China’s relationship with coal power remains intricate despite significant investments in renewable energy sources. The world’s top coal producer and consumer, China has committed to reducing its reliance on coal to combat climate change. Yet, paradoxically, it continues to expand its coal power capacity. In 2023, China mined a record 4.7 billion metric tons of coal and is developing new mines, aiming to increase production by another billion tons annually. This dependency on coal partly stems from its crucial role in the local economy, notably in regions like Shaanxi, where up to 8% of the workforce is employed in coal mining. Major coal-fired power plants, such as the Togtoh Power Station and Huadian Laizhou, contribute significantly to greenhouse gas emissions—each equivalent to the pollution generated by seven standard coal plants.
Rising Coal Usage Amidst Renewable Energy Growth
In 2022, China approved an unprecedented 106 gigawatts of new coal-fired capacity, the highest figure since 2015. This decision was driven by a pressing need to meet growing domestic electricity demand and concerns around energy security. During high summer temperatures, peak electricity demand reached record levels, emphasizing the need for reliable power sources. Though China leads globally in renewable energy capacity, boasting over 750,000 megawatts from wind and solar energy, the integration of these renewables into their electricity grid has been sluggish. Technological and infrastructure deficiencies have hindered substantial progress despite the available capacity.
While the country has declared its intention to phase down the use of coal beginning in 2026, there is significant uncertainty surrounding future approvals for new coal plants. The shift involves introducing renewables into new coal projects, decommissioning less efficient coal plants, and substantial investments in carbon capture technology. The Yushen Yuheng mega-plant is an example of this strategic integration, combining wind and solar power alongside coal. Efforts are ongoing, but the successful execution of these plans remains to be seen, especially in balancing the old with the new.
Economic and Employment Challenges
China’s ongoing expansion in coal power underscores a crucial dilemma: balancing energy demands with economic stability and job security. In regions heavily dependent on coal, like Shaanxi, the industry is a major part of the local economy. Despite China’s leadership in green jobs, employing nearly 4.6 million people in the solar sector, transitioning the workforce is a significant challenge. A study by the Beijing Institute of Technology stresses the need for policies to support new industries and retrain displaced workers. Job losses in the coal supply chain could threaten economic and social stability.
China’s efforts to balance coal use with renewable ambitions are complex. The government has initiated green jobs programs and is integrating renewable energy into existing coal projects, but the challenge is substantial. It remains to be seen if China can transition without major socio-economic disruptions. The model emerging from China could offer critical lessons for the world facing similar challenges in achieving sustainability.
China’s situation illustrates the broader global energy transition dilemma. The future of their energy policies will impact their environmental footprint and set a precedent for other countries on similar paths.
