China’s coal-fired power generation is back on the rise

China in August posted its first increase in coal-fired power output in four months as coal remains a vital part of the system despite rising output from clean energy sources and a growing share of renewables in the power mix. electricity.

China’s electricity production from thermal sources – which are predominantly coal-fired – rose 3.7 percent in August compared with the same month last year, according to official Chinese data cited by Reuters columnist Clyde Russell.

Growth in coal-fired power generation has lagged growth in renewable electricity generation. However, it underlines the still important role of coal in China’s electricity mix.

Despite continued growth in coal-fired power generation, China hit a clean energy milestone in the first half of the year as increased hydro, solar and wind power output pushed coal’s share of power generation below 60% for the first time.

The decline in coal’s share — largely helped by the rise of hydropower after two years of drought — is the latest chapter in a trend in recent years.

China has already achieved its goal of having more installed electricity capacity on non-fossil fuels than fossil fuels earlier than planned, with 50.9% of its power capacity now coming from non-fossil fuel sources. In 2021, Chinese authorities said they would target renewables to outpace installed fossil fuel capacity by 2025.

As China looks to rapidly expand its renewable energy capacity, it is not giving up on coal. The world’s second largest economy leads in global investment and installations in renewables and has a dominant role in many of the clean energy supply chains, including solar equipment, lithium processing and the mining and processing of other critical battery metals.

But China also continues to expand its coal-fired power fleet as its electricity demand grows, to ensure energy security and a stable supply of electricity, especially during peak periods.

By Charles Kennedy for Oilprice.com

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