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China’s clean energy surge is starting to squeeze out coal
Electrek • • business
Key Points:
- China is simultaneously meeting soaring electricity demand and reducing coal power usage, with coal generation declining in 17 of 26 provinces that account for over half of the country's thermal power capacity.
- In 2025, thermal generation (mostly coal) fell by 0.7% despite a 5% increase in electricity demand, marking a shift as clean energy expands while coal use flattens or shrinks.
- Battery storage has become China's largest installed energy storage capacity, growing 84% in 2025 and playing a key role in managing the grid amid rising clean energy production.
- Electrification is rapidly advancing in industrial sectors and transportation, with electric vehicles reaching 67% of new car sales by mid-2026 and significantly reducing China's oil import dependence.
- China’s transition away from fossil fuels challenges global fossil fuel demand growth, as the country’s clean energy exports surge and its Five-Year Energy Plan aims to peak coal and oil consumption by 2030.
