China Launches Record Coal-Fired Power Projects Amid Energy Security Concerns

Recent developments at Huanghua port in Hebei province, China, offer a striking view into the country's ongoing commitment to coal power despite declared plans to strictly control it during the 2021-2025 period. As power shortages loom, China has embarked on constructing 94.5 gigawatts of new coal-fired capacity for 2024, the largest volume of its kind since 2015. This move comes at a time when the nation is facing increasing pressure to promptly decrease its reliance on fossil fuels in order to meet global climate objectives.

Industry experts warn that maintaining a high share of coal in China’s energy mix could significantly delay achieving the needed rapid decline in greenhouse gas emissions. In a report developed by researchers at the Centre for Research on Energy and Clean Air (CREA) and the Global Energy Monitor (GEM), concerns were raised that the sizable surge in coal capacity may hinder the integration of clean energy into the national grid. Although the country celebrated the commissioning of 356 gigawatts of wind and solar power last year—achieving its 2030 renewable target six years early—the grid struggles to fully accommodate this new clean power, with utilization rates dropping towards the end of last year.

The situation is further complicated by the fact that China has retired over 100 gigawatts of outdated coal-fired power over the past decade. New coal projects are now planned primarily as backup for renewable bases, yet they are being driven by industry interests focused on energy security. With impending restrictions possibly taking effect as early as next year and ambitious carbon targets set for 2030 and 2060, industry players are racing to secure additional coal capacity while the window for expansion remains open.