China is again emphasizing coal in its energy policy as surging electricity demand, the variability of renewable power and geopolitical uncertainty raise concerns about energy security. Analysts say Beijing, long promoting a shift away from coal, is redefining it as a safeguard to keep the power grid stable.
The shift was underscored at a recent State Council meeting. China’s state-run Xinhua News Agency reported on April 21 that the State Council held its 19th group study session the previous day on accelerating the building of a new energy system by balancing energy security with a green, low-carbon transition.
Premier Li Qiang said strengthening energy security is a core foundation for building China into an “energy powerhouse.” Citing rapid changes in the international situation and rising energy consumption, he called for maintaining a sense of urgency and improving the resilience and security of the energy system with preparations for worst-case scenarios.
Li said the key to stronger energy security is optimizing the energy mix. He urged greater innovation in energy technology, faster development of a new energy system and a push for low-carbon shifts in energy production and consumption. He also called for expanding large clean-energy bases, including wind and solar in the northwest, hydropower in the southwest and offshore wind along the eastern coast, while developing distributed solar and wind as well as biomass, geothermal and ocean energy tailored to local conditions.
At the same time, Li made clear that coal’s role is changing. He said China should raise the level of clean and efficient use of fossil fuels, speed upgrades to improve efficiency at existing coal-fired plants and accelerate retrofits to cut carbon. He also said coal power should move beyond serving only as a baseload source and become a flexible resource that can adjust output to match demand.
China has promoted a shift from coal to renewables under its goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. With expanded wind and solar installations, renewable capacity last year rose to about 2.334 billion kilowatts, accounting for about 60% of total power capacity.
But electricity demand is rising quickly, outpacing the growth in generating capacity, the report said. Driven by artificial intelligence, data centers and the spread of electric vehicles, power consumption last year exceeded 10.4 trillion kilowatt-hours, more than double the 2015 level and more than twice that of the United States.
Renewables also pose challenges: solar and wind output can swing sharply with weather, making it difficult to respond reliably when demand peaks. With volatility in global energy markets rising amid the Russia-Ukraine war and the outbreak of the Iran war, arguments have gained traction for slowing the pace of coal cuts, the report said.
Against that backdrop, coal is re-emerging as a key stabilizing element in China’s power system. Coal output has continued to rise, and the National Bureau of Statistics said last year’s production hit a record 4.85 billion tons.
Some analysts say this does not amount to a return to coal-centered policy but reflects an evolution in coal’s function within the energy system. The U.S. foreign affairs magazine The Diplomat said China’s policy focus is shifting from expanding generation to ensuring grid stability as renewables grow, with coal being reshaped from a baseload source into a flexible balancing resource that offsets renewable variability.
Still, concerns remain that some local governments, citing short-term energy security, may lean on coal power because it is easier to build and cheaper, potentially adding pressure to long-term carbon-reduction goals, the report said.
* This article has been translated by AI.
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