Author: PPD Team Date: 16/04/2025
China plans to continue building coal-fired power plants until at least 2027, according to new government guidelines aimed at upgrading the country’s coal power infrastructure. The decision, released by China’s state planner and energy regulator, is stirring debate over the nation’s long-term climate commitments, particularly its pledge to start cutting coal use between 2026 and 2030.
Officials say new coal plants will be built only in areas where they are needed to handle peak power demand or help stabilise the grid. However, the announcement comes as a surprise to many observers, given China’s parallel push for carbon neutrality by 2060.
Under the new guidelines, newly built coal-fired units must emit 10–20% less carbon per unit of power than those in operation as of 2024. Existing plants will also need to be upgraded to meet these standards. The plants must be capable of flexibly adjusting their output, an essential feature as China adds more intermittent renewables like wind and solar.
A recent report from the China Coal Association casts further doubt on near-term coal reduction. It projects that China’s coal consumption will now peak in 2028, contradicting earlier forecasts that placed the peak as early as 2025. This delay is attributed to growing demand in the power and chemical sectors, which is expected to offset declining coal use in steel and building materials.
China isn’t turning away from green energy altogether. It has recently unveiled large-scale plans for offshore wind farms and renewable energy bases in its vast desert regions. These initiatives are intended to support the country’s dual carbon goals—peaking emissions before 2030 and achieving net zero by 2060.
As the world’s largest emitter of greenhouse gases, China’s energy strategy continues to draw close scrutiny, and its complex balancing act between energy security, economic growth, and climate targets remains under the global spotlight.