China's Energy Future Runs on Coal and Solar
US Crude Oil Inventories Keep Falling As Hormuz Flows Slow To Start UK government-backed ESG reporting platform… What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… China will continue spending heavily on both coal and alternative energy, such as wind and solar, over the next five years, Beijing’s latest five-year plan revealed this month.
The apparent paradox sees the world’s largest emitter by far continue to generate a solid portion of its energy from coal while also boosting the largest alternative energy capacity in the world.
The thing is, it is not actually a paradox.
Ever since the signing of the Paris Agreement in 2015, a host of countries have been working hard to reduce their reliance on hydrocarbons in transport and power generation.
China has been among the most active transitioners, while maintaining that it will pursue an all-of-the-above attitude to energy.
While Germany was shutting down its last nuclear reactors and Britain was strangling its North Sea oil and gas production to free space for wind and solar, China was building both wind and solar installations and coal power plants.
And it intends to continue doing just that.
In 2025, China accounted for as much as 78% of all new coal power generation capacity globally.
It currently accounts for 86% of coal generation capacity currently under construction in the world that is planned to be put into operation this year.
China, in other words, is building coal power plants like there’s no tomorrow.
This is because China appears to be very well aware of the importance of baseload generation, the kind that comes on demand rather than when the weather is right.
Related: US Crude Output Sets New Monthly Production Record Yet China also appears to be well aware of the importance of diversification, which is why it has been investing massively into the buildout of the world’s largest alternative energy generation capacity.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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