Coal Power Generation in China Dips by 5.8% in January-February

Coal Power Generation in China Dips by 5.8% in January-February | OilPrice.com

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Breaking News:

ByTsvetana Paraskova– Mar 17, 2025, 6:10 AM CDT

Thermal power generation in China, which overwhelmingly consists of coal plants, dropped by 5.8% in January and February compared to the same months of 2024, official data showed on Monday.

Thermal power generation fell to 1.02 trillion kilowatt-hours (kWh) in January and February, which China combines in economic and data releases to smooth out the effect of the Lunar New Year which falls in one of these two months every year.

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The drop in thermal generation was offset by an increase in hydropower output, which is the second biggest source of electricity in China.

Hydropower generation increased by 4.5% on the year to 146.1 billion kWh, according to data from China’s National Bureau of Statistics cited by Reuters.

Last year, thermal power generation in China rose by 1.5% compared to 2023, despite the surge in renewable power capacity installations and the rebound of hydropower after a drought in 2023.

Coal is still king in China despite the renewables boom with record additions of solar and wind power generation.

Last year, growth in thermal power generation was the weakest in nearly a decade, excluding the pandemic years 2020-2022 when China was under lockdowns.

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 renewables and will stay such for years to come as power demand jumps with the increasing electrification of homes and transport.

Renewables have started to replace a small part of coal-fired power generation, but during prolonged heat waves and at peak winter demand, it is coal that is keeping the lights and heating/cooling on in China.

The rising numbers of the middle class in cities boost electricity consumption, and so does industry, although at a slower pace due to the weaker Chinese economic growth in recent months.

By Tsvetana Paraskova for Oilprice.com

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