Source：solarquarter

In a major development, China’s swift expansion of renewable energy is leading to a significant decrease in coal power project approvals, according to a recent report by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor. The report reveals that in the first half of 2024, China reduced coal power permits by 83% compared to the same period in 2023, approving only 9 gigawatts (GW) of coal power capacity. This decline follows a surge in coal power permits in 2022 and 2023, which exceeded 100 GW annually.

Despite this positive trend, challenges remain. Construction began on over 41 GW of coal projects in the first half of 2024, nearly matching the total construction for all of 2022. Moreover, the government plans to bring 80 GW of coal-fired capacity online by the end of 2024, signaling potential increases in project completions later in the year.

The slowdown in coal power permitting is largely attributed to the rapid deployment of clean energy, which is now sufficient to meet China’s growing electricity demand. As a result, the central government has shifted its policy focus towards carbon emission reductions and clean energy development, emphasizing grid reforms, energy storage, and other sustainable solutions.

However, the report cautions that to meet long-term climate goals, China must accelerate the retirement of existing coal plants and cancel previously permitted projects. While the current trend suggests a reduced role for coal in China’s energy mix, the government’s ongoing reliance on coal as a baseload power source indicates that coal power will continue to play a significant role in the near term.

The report’s authors, Qi Qin of CREA and Christine Shearer of Global Energy Monitor, underscore the importance of this transition. They argue that China’s clean energy development should lead to more ambitious targets for coal reduction and carbon emissions, urging the government to focus on energy security through clean energy rather than coal.

As China prepares its upcoming Nationally Determined Contributions (NDCs) and the 15th Five-Year Plan, the report emphasizes the need for ambitious goals to further reduce coal consumption and expand renewable energy, aligning with global efforts to mitigate the climate crisis.