In a significant departure from the previous two years, China’s approvals for new coal-fired power plants plummeted in the first half of this year, according to an analysis released by Greenpeace East Asia. The review of project documents found that only 14 new coal plants were approved from January to June, with a total capacity of 10.3 gigawatts, a staggering 80% decline from the 50.4 gigawatts approved during the same period last year.
This sudden drop in approvals has raised concerns among climate experts, who were previously alarmed by China’s surge in coal plant permits in 2022 and 2023. Chinese authorities had approved an unprecedented 90.7 gigawatts in 2022 and 106.4 gigawatts in 2023, a level of investment that had sparked concerns about the country’s commitment to limiting climate change.
Despite China’s leadership in solar and wind power installations, the government has maintained that coal plants are necessary to meet peak demand periods, when wind and solar power output can be less reliable. However, experts are warning that it will be challenging for China to wean itself off coal once the new capacity is built.
Gao Yuhe, project lead for Greenpeace East Asia, saw the drop in approvals as a potential turning point, but noted that it was still unclear whether provinces were slowing down coal approvals because they had already approved so many projects or if this was a sign of the coal industry’s decline. “Only time can tell,” she said.
Coal Fire Wanes in China as Climate Concerns Intensify (Image via Getty)
The analysis was released in conjunction with the Shanghai Institutes for International Studies, a government-affiliated think tank, and coincides with the release of several government documents outlining plans to reduce carbon emissions and accelerate the shift to renewable energy.
The National Energy Administration has revealed a three-year plan to retrofit existing coal power units and equip newly built ones with low-carbon technologies, while another government plan aimed at “accelerating the construction of a new power system” addressed challenges such as expanding the transmission of renewable energy.
Additionally, China is exploring nuclear power as a way to meet its carbon reduction targets. The State Council recently gave the green light to five nuclear power projects, with 11 units and a total cost of 200 billion yuan (£21.6 billion).
While the decline in coal plant approvals is a welcome development, it remains to be seen whether China can effectively transition away from coal and towards cleaner forms of energy.
