China Accelerates Coal Plant Commissioning To 9-Year High

Despite a significant boom in renewable energy, China continues to heavily invest in coal power. In the first half of 2025, China commissioned 21 gigawatts of new coal power capacity, the highest for that period since 2016. Projections indicate that over 80 gigawatts of coal capacity could be commissioned for the entire year. While China leads globally in renewable energy installations, it also remains the primary driver of record-high global coal demand. The country is actively seeking to increase its domestic coal demand and prices this year, which have been depressed. A report highlights that coal power remains strong in China, with new and revived projects at a decade-high. This surge follows a substantial increase in coal project permitting in 2022 and 2023, with over 100 GW approved in each of those years. The trend is expected to persist into 2026 and 2027 without policy changes. Experts warn that continued coal expansion risks hindering China's economic growth and decarbonisation efforts. They suggest that more coal plants would be a wasted investment and could displace renewables, which are crucial for China's future economy.