BY COMFORT OGBONNA
China generated less than half of its electricity from coal during the first six months of the year, marking a significant milestone for the world’s largest coal-consuming nation as renewable energy continues to expand across its power sector.
Coal accounted for 49.7% of China’s electricity generation mix during the six-month period ending in June, according to energy officials, representing the first time the fuel’s share has fallen below the 50% threshold. The decline reflects the country’s rapid expansion of wind, solar and other renewable energy sources as Beijing works to reshape its energy system.
Renewable energy sources accounted for 41.2% of China’s electricity mix during the period, surpassing 40% for the first time. Wind and solar power alone contributed 24.6%, while nuclear energy and natural gas supplied the remaining portion of the country’s electricity generation.
The shift highlights China’s growing investment in clean energy infrastructure, including large-scale solar farms, wind projects and distributed energy systems. The country has become the world’s largest installer of renewable energy capacity, with continued expansion driven by government policies aimed at reducing emissions and improving energy security.
Despite coal’s declining share of the electricity market, analysts caution that China’s total coal consumption could still increase this year because overall electricity demand continues to rise rapidly. Economic growth, expanding data center operations linked to artificial intelligence development, rising electric vehicle adoption and strong manufacturing activity are all contributing to higher demand for power.
China remains heavily dependent on coal compared with many other major economies because of its large domestic coal reserves and limited natural gas resources. While renewable energy capacity has expanded quickly, coal-fired power plants continue to play a major role in maintaining grid stability, particularly during periods of peak demand.
The Chinese government has set a target for coal consumption to reach its peak no later than 2030 as part of its broader climate strategy. At the same time, authorities have committed to increasing the share of wind and solar power in the national electricity mix to 30% by 2030.
Some environmental analysts believe China could achieve that renewable energy target earlier than planned. They point to rapid growth in rooftop solar installations, battery storage technology and improvements in electricity market flexibility as factors that could accelerate the transition away from fossil fuels.
Experts say expanded energy storage systems, stronger demand management programs and more adaptable electricity markets will allow China to integrate larger amounts of renewable power while maintaining reliability across its vast national grid.
China’s energy transition remains one of the most closely watched developments in global climate efforts. The country is simultaneously the world’s largest producer and consumer of renewable energy while also remaining the biggest consumer of coal, creating a complex balance between reducing emissions and meeting rapidly increasing electricity demand.
Compared with other major economies, China’s reliance on coal remains relatively high. In the United States, coal accounted for a much smaller share of electricity generation in recent years, with natural gas providing a larger portion of power production. India, another major coal producer and consumer, remains even more dependent on coal, with the fuel accounting for a significantly larger share of its electricity generation.
As China continues expanding renewable energy capacity, policymakers face the challenge of managing a gradual transition while ensuring that the country’s growing demand for electricity is met. The pace at which renewable energy replaces fossil fuels will depend on continued investment in clean power generation, energy storage and improvements to the national electricity grid.
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