China’s thermal power generation, which mainly uses coal and also some natural gas, declined slightly over the first quarter thanks to stronger hydropower generation and wind and solar, Reuters has reported, citing government data.
Thermal power output was down 4.7% between January and March, while hydropower generation rose by 9.5%. Total demand for electricity dipped by 1.3% during the first two months of the year but rose by 1.8% in March, the data from the Chinese National Bureau of Statistics showed.
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That data, however, does not include smaller-scale wind and solar installations. Per figures from the National Energy Administration, which does take these into account, demand for electricity as represented by output, rose by 1.3% during the first two months of the year.
Reuters noted in an earlier report that the decline in thermal power generation was the first one since at least 1998, excluding demand changes during the Covid pandemic lockdowns. The reason appears to be warmer weather, which prompted a thermal power output dip of 5.8% over the first two months of the year.
The first-quarter decline follows an increase in coal-powered generation in 2024 to a new record high of 6.34 trillion kilowatt-hours, which represented a 1.5% annual rise. The persistent growth in Chinese coal demand, including for power generation, goes to show that coal remains the baseload of China’s power system to back up the surge in wind and solar. The situation will likely remain unchanged for years to come as power demand jumps with the increasing electrification of homes and transport.
Meanwhile, lower coal use and higher domestic supply led to a decline in coal imports in March by 6% after a 2% increase over the first two months of the year. The March dip translated into an overall 0.9% decline in coal imports for the quarter.
By Irina Slav for Oilprice.com
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