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China Coal Power Share Falls Below 50% for First Time

BEIJING, July 30 (Reuters) - China, the world's largest coal consumer, generated less than 50% of its ​electricity from the fossil fuel in the six months to June, marking a first ‌for the country, which has been promoting the use of renewable energy, officials said.

Coal's share of the power mix was 49.7%, Xing Yiteng, deputy director general of the energy administration's development and planning office, told a press conference on Thursday.

That ​share was well down from 65.5% in 2016, previous NEA figures showed.

Renewable energy's share grew ​to 41.2% — topping 40% for the first time — and of that wind and ⁠solar accounted for 24.6%, Xing added. Wind and solar's share was up from 9.7% in 2020.

Natural gas ​and nuclear make up the balance.

Despite coal's shrinking share, analysts say China might still use more of it ​this year than last as power demand rapidly climbs. More Chinese are switching to electric cars, data centres for AI are being built out, and exports continue to grow. Planners have set a deadline for coal consumption to peak ​no later than 2030.

China's targets call for increasing wind and solar to 30% of its power mix ​by 2030, but Gao Yuhe, Greenpeace East Asia's project manager, says that goal could be hit by 2028, helped ‌by more ⁠rooftop solar-plus-battery deployment.

"Storage, together with demand response and more flexible electricity markets, will enable much higher penetration of distributed solar and help meet growing electricity demand with renewable energy rather than fossil fuels," she said.

China's coal power share is much higher than some other large economies in part because it has ​abundant coal reserves and ​comparatively little natural gas. ⁠For example, coal made up just 17% of U.S. utility-scale power generation in 2025 while 41% was from natural gas.

However, China's coal dependence is lower ​than coal-rich India, where coal and lignite accounted for 69% of power ​generation last year.

Despite ⁠ample domestic coal reserves, China still imported nearly 500 million metric tons per year of coal last year — against 4.83 billion tons of domestic production — with much of the imports going to coastal power plants. ⁠Coal's decline ​could have knock-on effects for top suppliers Indonesia, Mongolia, Australia ​and Russia, although imported coal's share depends largely on the price differential.

While consumption in the coal-to-chemicals industry is still on the rise, ​many projects rely on cheap domestic coal.

Reporting by Colleen Howe; Editing by Edwina Gibbs and Hugh Lawson

Source: Reuters


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