Electricity generation from hydrocarbons in China surged to the highest in a year last month driven by record temperatures, Reuters reports, citing official Beijing data.
Total generation from coal and gas rose by 4.3% last month to 602 billion kWh, as wind and solar cannot meet such swings in demand and as hydropower output declined amid typical summer drought conditions.
The report noted, however, that overall, electricity generation from coal and gas has been on a downward trend since the start of the year and that 2025 may become the first year China’s electricity output from hydrocarbon-powered facilities declines. The decline has been modest, at 1.3%, but notable, as the leader in wind and solar capacity keeps expanding said capacity.
Record-high domestic coal production and weaker coal-fired power generation in China this year have resulted in declining demand for thermal coal imports into the world’s biggest coal market, with the trend emerging earlier this year, after imports topped 500 million tons in 2024.
Earlier this year, between January and May, domestic coal production broke a record, with the full-year total seen 5% higher than in 2024—despite the observed decline in thermal power generation in the first seven months of the year.
Meanwhile, China has sped up new coal power plan approvals again. After a decline in new permits last year, these are once again on the rise, Greenpeace complained recently. China approved 11.29 GW of new coal power capacity in the first quarter of 2025. This pace of coal-fired generation capacity approvals already exceeds the 10 GW China approved in the first half of 2024.
China is also boosting domestic gas production in evidence of its all-of-the-above approach to energy security. This boost has led to a 12% annual decline in imports of liquefied natural gas as of June, in combination with higher pipeline imports from Russia.
By Irina Slav for Oilprice.com
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