Energy supply: Renewables are booming in China – but so is coal

Renewables are booming in China – but so is coal
25.08.2025, 03:29 Reading time: 2 min.
The dimensions are enormous: By 2025, China will be expanding its wind and solar energy capacity 25 times faster than Germany. But many new coal-fired power plants will also be coming online. How long will Beijing continue to rely on this?

In the first half of 2025, China added more coal-fired power to the grid than at any time in nine years. This despite its rapid expansion of renewable energies. According to an analysis by the Center for Research on Energy and Clean Air (CREA), the People's Republic connected power plants with a total capacity of 21 gigawatts – a record high for the first half of the year since 2016.

According to experts, a total of more than 80 gigawatts is expected to come online by 2025. The development of coal-fired power in China shows no signs of slowing and will remain part of the energy system for years to come, said analyst Christine Shearer, according to a statement.

Huge increase in green energy

At the same time, China continues to focus on green energy. CREA expects more than 500 gigawatts of wind and solar energy capacity to be added by 2025. By comparison, according to the Federal Network Agency, Germany added almost 20 gigawatts of solar, wind, and biomass capacity in 2024, bringing its total installed capacity to 190 gigawatts.

According to an analysis by the online specialist portal Carbon Brief, the expansion of green energy contributed to a one percent reduction in emissions of the climate-damaging greenhouse gas carbon dioxide in China in the first half of 2025 compared to the same period last year. The energy sector, the largest CO2 emitter, emitted three percent less carbon dioxide into the air during this period.

China's clean energy boom is driving economic growth and decarbonization, but the continued expansion of coal is also wasting investment, said CREA analyst Qi Qin. China's government relies on coal when there isn't enough electricity from renewables. CREA criticizes that China rarely uses its coal-fired power plants in this flexible way.

According to Crea, Beijing approved new coal projects with a total capacity of 25 gigawatts in the first half of the year. New and revived applications also account for 75 gigawatts. Analysts suspect that the project sponsors want to take advantage of the 2030 window, by which time China aims to have reached its peak CO2 emissions. Furthermore, it remains to be seen which energy and climate targets Beijing will include in its upcoming five-year plan for 2026 to 2030.

The world's second-largest economy is considered a key player in the global fight against climate change. Several years ago, during the climate conference in Glasgow, the international community agreed to phase out coal for the sake of the climate—and has reaffirmed this commitment several times since then. China is also at the table.