Construction of Coal Power Plants in China Hits Highest Level in a Decade

Report shows 94.5 GW of coal capacity broke ground in China last year, and there was also an uptick in proposed coal plants in other parts of the world

Readers of TCT could have anticipated the findings of a report issued this week by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM). The report shows that instead of coal being replaced by clean energy in China, renewables generation is being layered on top of coal generation and the country continues to rely on coal.

The report examines this “parallel” energy expansion, where rapid clean energy growth is happening alongside continued coal power development.

Key Findings

• Coal Power Expansion Continues: In 2024, China approved 66.7 GW of new coal-fired capacity, with construction starts reaching 94.5 GW—the highest since 2015.

• Renewables Growth vs. Coal Dependence: China added 356 GW of wind and solar capacity, yet coal remains entrenched due to long-term power purchase agreements (PPAs) that guarantee coal power utilization.

• Structural Constraints on Renewables: Despite record clean energy additions, renewables integration is hindered by curtailment, with solar and wind utilization declining due to coal power contracts.

• Dominance of Coal Mining Companies: Over 75% of new coal power capacity in 2024 was backed by coal mining companies, securing long-term coal demand despite the push for energy transition.

• Limited Role of Coal in Grid Balancing: Although coal was intended to support renewables, most new projects are justified on economic and energy security grounds rather than flexibility.

Despite China’s climate pledges, the report highlights that coal power remains dominant due to entrenched policies, financing structures, and long-term agreements that disadvantage renewables. Addressing these challenges is crucial for aligning China’s energy sector with its decarbonization goals.

Read the full report here.

Global Energy Monitor’s Global Coal Plant Tracker is a good source of info on coal plant construction and retirements. Access that here.