China’s industry is gradually switching to clean electricity — Climate Home News
In China, wind power, solar energy and electricity storage systems are gradually displacing coal, oil and gas in industrial sectors, Climate Home News reports, citing an analysis by energy think tank Ember. In 2025, clean electricity met all growth in the country’s electricity demand, while coal-fired power generation declined for the first time in a decade. Overall electricity demand rose by 5%.
In the first half of 2026, coal-fired generation increased again, but Ember believes that the large-scale commissioning of wind and solar capacity, battery development and the electrification of the economy indicate a long-term shift in the energy model of Chinese industry.
Slowdown in coal-fired generation
According to Ember, coal-fired power generation stopped growing in 17 of the 26 analyzed provinces and regions in 2021–2025. They include the industrial hubs of Hunan and Shandong, where energy-intensive industries, including cement production, operate. These regions account for more than half of China’s thermal power generation capacity.
Electricity accounted for 29% of China’s final energy consumption in 2024. By comparison, the figure was about 23% in Europe and 21% in the United States. In the first half of 2026, coal’s share in China’s electricity generation was below half.
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Changes in industry
Fossil fuel consumption declined in eight of the 11 industrial sectors tracked by Ember. From peak levels, it fell by 26–71% in mining, textile manufacturing, machinery production, food manufacturing, beverage production, transport equipment manufacturing and chemical materials production.
In sectors where electrification is easier, including machinery, electronics and textile production, electricity already provides about three quarters of final energy consumption. Analysts also recorded signs of leveling off in fossil fuel consumption in metallurgy and metal processing.
At the same time, China continues to expand coal capacity. In the first six months of 2026, the country commissioned 30 GW of new coal-fired generating capacity, while coal-fired power generation rose by 3%. Another 274 GW of coal capacity is under construction or has permits for construction. Ember notes that significant volumes of solar and wind generation in the first half of the year were not absorbed by the power grid.
