China Has Cut New Coal Power Plant Permits by Nearly 80%, Greenpeace Says

By Colleen Howe

BEIJING, Aug 21 (Reuters) – China, the world’s largest builder of coal-fired power stations, cut the number of permits for new plants by nearly 80% in the first half of 2024, an environmental group report finds, saying time would tell whether it was a turning point.

The Greenpeace East Asia report, based on new project approval data, also found China’s combined wind and solar capacity of 11.8 terawatts (TW) exceeded coal capacity (11.7TW) for the first time in the first half, and made up 84.2% of all new grid-connected capacity.

At the same time, China commissioned 14 coal plants with a total 10.3 gigawatts (GW) of power generating capacity – a 79.3% decrease from the first six months of 2023, the report published on Tuesday showed.

Greenpeace East Asia project lead Gao Yuhe said wind and solar expansion has been strong as coal building slows, but that it was unclear what the slowdown meant for use of the carbon-intensive fossil fuel.

“Are Chinese provinces slowing down coal approvals because they’ve already approved so many coal projects during this five-year plan period? Or are these the last gasps of coal power in an energy transition that has seen coal become increasingly impractical? Only time can tell.”

Greenpeace said investment should be put toward improving grid connectivity, to increase output from China’s huge fleet of wind and solar plants.

Analysts at the Helsinki-based Centre for Research on Energy and Clean Air believe China’s carbon emissions may have peaked in 2023. They report emissions fell 1% year-on-year in the second quarter of 2024, in the first quarterly drop since the COVID-19 pandemic.

China says it still builds coal plants for grid stability and to ensure it has enough dispatchable power during periods of peak demand, such as during the record-breaking heat that swept much of the country in July.

Economic planner the National Development and Reform Commission did not immediately respond to a faxed request for comment.

Reporting by Colleen Howe; editing by Barbara Lewis

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