China Reduces New Coal Plant Approvals by 80% in First Half of 2024

• China has significantly reduced the number of approvals for new coal-fired power plants by nearly 80% in the first half of 2024.
• The combined wind and solar capacity in China exceeded coal capacity for the first time, with 11.8 TW of renewable energy connected to the grid versus 11.7 TW of coal.
• The construction of coal plants has slowed, with 14 new coal plants (10.3 GW capacity) launched, marking a 79.3% decrease compared to the same period in 2023.
• The long-term impact of these changes on China’s reliance on coal is still uncertain, with environmental experts questioning whether this represents a fundamental shift or just a temporary slowdown.

Beijing, August 21 (FFN) – China, the world’s largest builder of coal-fired power plants, has dramatically reduced the number of permits issued for new coal plants by almost 80% in the first half of 2024. This substantial reduction was reported by the environmental organization Greenpeace, which highlighted the possibility of a turning point in China’s energy policy, although the long-term implications remain unclear.

According to Greenpeace’s report for East Asia, based on official project approval data, the combined wind and solar capacity in China reached 11.8 terawatts (TW) in the first half of the year, surpassing coal capacity for the first time, which stood at 11.7 TW. Wind and solar accounted for 84.2% of all new capacity added to the grid.

Despite this progress in renewable energy, China still brought 14 new coal-fired power plants online, with a total generating capacity of 10.3 gigawatts (GW). However, this marks a significant decrease of 79.3% compared to the first half of 2023.

While the expansion of wind and solar power is promising, the head of Greenpeace’s projects for East Asia expressed caution, noting that it is too early to determine whether this represents the beginning of a decline in China’s reliance on coal or merely a temporary pause. The question remains whether Chinese provinces are slowing coal project approvals due to the large number of projects already greenlit under the current five-year plan or if this signals a deeper transformation in the country’s energy strategy.

China has justified the construction of new coal plants as necessary to maintain grid stability and ensure energy supply during peak demand periods, such as during the record-breaking heatwaves that hit much of the country in July.

Key Data on China’s Energy Policy (H1 2024)