China’s coal power falls in 2025 as renewables scale up

China’s coal based power generation declined in 2025, marking its first annual fall in a decade, even as total electricity consumption reached a record high. The shift reflects the growing role of renewable energy in meeting demand, according to government data reported by Reuters.

Data from the National Bureau of Statistics (NBS) showed that thermal power generation, dominated by coal, declined by 1% in 2025 to 6.29 trillion kWh. The slowdown was sharper in December, with output down 3.2% year on year. Analysts linked the decline to rapid additions of renewable capacity and slower growth in power demand, which eased to 5% in 2025 from 6.8% in the previous year. Peng Chengyao of S&P Global Energy said the cumulative impact of record renewable additions has increasingly displaced coal in the generation mix.

Despite the drop in thermal output, China’s overall electricity consumption crossed 10 trillion kWh for the first time, according to the National Energy Administration (NEA). Demand growth was driven by sectors such as internet services and electric vehicle manufacturing. The level of consumption exceeded the combined electricity use of the European Union, Russia, India, and Japan in 2024.

Total power generation in China stood at 9.72 trillion kWh in 2025, NBS data showed. Hydropower output rose by 2.8% during the year, while nuclear generation increased by 7.7%, reflecting continued diversification of the power mix.

Analysts expect the trend to persist. Thermal power generation is not expected to accelerate in 2026, with renewable capacity continuing to expand and power demand growth projected to remain stable. Feng Dongbin of Fenwei Digital Information Technology said the structural shift in China’s power generation mix is becoming difficult to reverse.

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