China is building more coal-fired power plants at a fast pace, even while it is installing renewable energy on a scale never seen before. This sharp contrast is raising serious concerns about pollution, climate goals, and long-term energy planning. At the same time, it highlights how energy security remains a top priority for the country.
China is the world’s largest energy user and the biggest source of carbon dioxide emissions. Because of this, every major energy decision it makes has global consequences. Recent data shows that while renewable energy is growing rapidly, coal is still being added in large amounts.
A surge in coal power alongside a renewable boom
China installed a record amount of renewable energy capacity in 2025. Wind and solar power additions reached about 434 gigawatts in a single year. This means more than half of all new renewable energy capacity added worldwide in 2025 came from China alone. Renewable sources now make up over 60 percent of China’s total installed power generation capacity.
This rapid expansion of clean energy has been enough to meet the country’s yearly rise in electricity demand. Electricity use in China grows by around 4 to 5 percent each year. That growth is already being covered by wind farms, solar parks, battery storage systems, and major upgrades to the power grid. These clean energy investments have also helped slow the rise of carbon emissions, even though China remains the largest emitter globally.
However, at the same time, coal power construction has accelerated. New and revived coal power project proposals reached a record level of about 161 gigawatts in 2025. To put this into simple terms, that amount alone is many times larger than the total power capacity of some entire countries. By the end of 2025, around 291 gigawatts of coal power capacity were still in the development pipeline. These are plants that have already been approved or are under construction.
This pipeline equals roughly 23 percent of China’s existing coal power fleet, which is already the largest in the world. Adding so much new coal capacity appears to clash with the country’s massive renewable energy push. It also raises fears that China could lock itself into years of extra coal use.
Energy security fears and rising risks in China
Coal remains central to China’s energy system because policymakers view it as dependable and easy to control. Unlike wind and solar power, coal plants operate around the clock and do not rely on weather conditions. As a result, authorities continue to trust coal for stable electricity supply. This concern over reliability intensified after China faced several severe weather events in recent years.
In 2022, prolonged droughts combined with extreme heat sharply reduced hydropower generation, particularly in southwestern regions. Consequently, electricity shortages emerged and power cuts disrupted daily life and industrial activity.
These disruptions alarmed local governments, which must ensure uninterrupted power for homes, businesses, and factories. Therefore, many provinces quickly approved new coal power projects in 2022 and 2023 to prevent similar crises in the future.
These approvals continue to influence China’s energy landscape today. Although renewable energy now meets nearly all new electricity demand, authorities still treat coal as a backup system. Because of this security-first mindset, coal plant construction has continued even as wind and solar capacity expands at record speed.
However, this strategy introduces growing risks. As more renewable energy enters the grid, coal plants run less frequently. In 2025, the average coal power plant in China operated at only about 47 percent of its capacity, a sharp drop from the historical average of around 70 percent. As utilisation falls, operating costs rise and profit margins shrink.
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At the same time, the risk of stranded assets is increasing. When newer and cheaper clean energy replaces older infrastructure, coal plants can become underused or financially unviable. With hundreds of gigawatts of coal capacity still in development, many plants may struggle to justify their role in an increasingly renewable-driven power system.
Moreover, operational rules create additional challenges. Regulations often require coal plants to remain online even when they produce minimal electricity. This reduces grid flexibility and limits the system’s ability to absorb more renewable energy. In some cases, grid operators must cut back clean power generation simply because coal units continue running, even when they are not needed.
Climate targets under pressure from coal expansion
China has pledged that its carbon emissions will peak before 2030 and that it will reach carbon neutrality by 2060. Coal burning is the single largest source of carbon dioxide emissions in the country. Because of this, continued coal expansion creates tension with these climate targets.
China already accounts for about one-third of global carbon dioxide emissions. It is also the world’s largest coal producer and consumer, as well as the biggest oil importer. Decisions about coal power therefore have a direct impact on global climate efforts.
Despite the addition of nearly 95 gigawatts of new fossil fuel power capacity in 2025, most of it coal, overall coal power generation declined. This shows that renewable energy is increasingly pushing coal aside in actual electricity production. Nuclear power also plays a role, as China continues to expand its nuclear fleet and already has the second-largest number of nuclear plants in the world.
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Even so, the presence of a large and inflexible coal fleet creates structural challenges. A system with too many coal plants and rigid operating rules risks locking coal into the energy mix for longer than needed. This can squeeze out clean energy and reduce overall system efficiency.
China is now linking its energy policies closely to the next national planning cycle. The upcoming 15th Five-Year Plan, which will guide the country from 2026 to 2030, will actively determine how coal, renewable energy, and overall energy security are balanced. Experts warn that if authorities continue to expand coal, postpone plant retirements, and maintain misaligned incentives, these decisions could significantly raise long-term risks.
At the same time, the current situation clearly shows a country trying to manage competing priorities. On one side is a world-leading push into renewable energy. On the other is a deep reliance on coal to guarantee stable and secure power. The result is an energy system marked by rapid clean growth, heavy coal investment, and growing complexity, all unfolding at the same time.
