China commands global headlines with its clean energy investments, smashing records in solar and wind. But in 2024, the nation also set a nearly decade-high record for new coal-fired power construction—building 94.5 GW of capacity and restarting 3.3 GW in mothballed projects. It’s a bold, contradictory move: leading the world in renewables and in new coal plants at the very same time.
This blog unpacks why China is fueling both sides of the energy equation, how policy and structural challenges hinder genuine transition, and what this means for the world’s climate future.
Key Highlights
In 2024, China started building 94.5 GW in new coal-fired power—its highest since 2015—and resumed 3.3 GW of paused projects.
This coal resurgence comes as China simultaneously leads the world in installing renewable energy, adding 356 GW of wind and solar in 2024 alone.
Structural policy tensions and local economic drivers are undermining the shift away from coal—raising doubts about China’s 2030 and 2060 climate targets.
Instead of displacing coal, new renewables are being layered atop old fossil fuel infrastructure, risking long-term “carbon lock-in.”
Reforms to power markets, grid integration, and coal plant approvals are urgently needed if China is to truly pivot to a low-carbon energy future.
The Numbers: Coal Resurgence Breaks 10-Year Records
According to research from the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor, 2024 saw China begin construction on a whopping 94.5 gigawatts of new coal-fired power—the highest buildout since 2015. An additional 3.3 GW of previously suspended projects rejoined the pipeline. Despite an initial lull, coal plant approvals rebounded in the year’s second half: 66.7 GW were approved, bringing total new and revived proposals since 2022 to about 332 GW—95% of last year's global new coal construction was in China.
Meanwhile, retirements of old coal plants slowed to just 2.5 GW, signaling a clear intent to preserve fossil capacity.
The Paradox: Coal and Renewables Rising Together
This coal surge comes against the backdrop of a renewable energy boom. China’s investments in wind and solar soared to record heights—356 GW added in 2024 alone; total wind and solar capacity surpassed 1,400 GW, smashing the country’s own 2030 targets years ahead of schedule. Global energy transition spending topped $2 trillion, with China representing 40% of that growth.
So why the simultaneous coal buildout?
Energy Security Fears: Extreme weather, rising demand, and grid instability have made reliable (dispatchable) power a political priority.
Grid Integration Woes: Rapid wind and solar growth led to lower utilization in late 2024, signaling integration and curtailment problems.
Local Economic Drivers: Most new coal capacity is financed or sponsored by coal mining companies and local governments eager for investment, jobs, and rate stability.
Policy Contradictions: National pledges to strictly limit coal “increase” coexist with de facto support for new construction, especially in economic recovery or grid stress seasons.
Rather than replacing coal with renewables, China is adding clean energy on top of its legacy high-emissions grid—a trend labeled by analysts as “energy addition” rather than “energy transition”.
Why This Strategy Risks Undermining the Clean Energy Transition
1. Locks in High Emissions
Building new, long-lived coal plants means a continued baseline of greenhouse gas emissions for decades. This reality could jeopardize China’s ambitions to peak carbon by 2030 and achieve neutrality by 2060.
2. Crowds Out Clean Energy
New coal capacity can underutilize wind and solar assets, especially when the grid is inflexible or overbuilt with baseload supply. In Q4 2024, clean energy utilization rates dropped sharply—despite abundant installed capacity.
3. Weak Grid Reform and Policy Mismatch
Efforts to reform market incentives, pricing, and grid flexibility lag behind construction schedules. Without robust policy change and a supportive market, renewables' full potential will continue to be stunted by fossil priorities.
Local vs. National: The Politics Behind the Paradox
China’s top leadership, notably President Xi Jinping, has repeatedly pledged to “strictly limit” new coal and favor a clean energy shift. Yet, at the provincial and local level, energy security and economic growth often take precedence. Coal remains a go-to solution for short-term power crunches and local employment, with coal mining companies backing 75% of newly approved capacity in 2024.
Glimmers of Change: A Potential Slowdown Ahead?
There is evidence that new coal project proposals may finally be cooling. The volume of new and revived proposals fell from 146 GW in 2022 to 117 GW in 2023, and to 68.9 GW in 2024. Some experts think renewable capacity now grows fast enough to absorb all new demand by 2025, setting the stage for a sector-wide emissions peak. Still, the coal momentum from 2024 will echo for years as new plants come online.
What Needs to Happen Next? Pathways to a Real Transition
End New Coal Approvals: Align policy with climate commitments; stop permitting and financing new coal capacity.
Accelerate Grid Reform: Build flexible, high-capacity grids and energy storage to better integrate variable renewables.
Retire Old Capacity Faster: Increase retirement or conversion of outdated, inefficient coal plants.
Align Local and National Policy: Incentivize regions to prioritize clean energy and phase out excess fossil infrastructure.
Transparent Monitoring: Rigorously track and publicize progress on both renewables integration and real emission reductions.
Takeaway: Growth vs. Transition—A Nation at a Crossroads
China’s explosive deployment of both coal and renewables delivers a mixed message to the world: ambition without alignment. Until energy policy, local incentives, and structural investment shift firmly toward replacing coal—not merely building alongside it—the world’s biggest carbon emitter risks locking itself out of a truly clean energy future.
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