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For the first time, China generated less than half of its electricity from coal

UA NEWS 30 July 2026 15:24
For the first time, China generated less than half of its electricity from coal

For the first time in history, China generated less than half of its electricity from coal-fired power plants. In the first half of 2026, the share of coal-fired generation in the country’s total electricity production fell to 49.7%, according to the National Energy Administration of the People’s Republic of China.

This figure marks a significant shift for the world’s largest consumer of coal, as coal-fired power plants had previously provided the bulk of China’s electricity.

The decline in coal’s share is attributed to the rapid development of alternative energy sources, particularly solar and wind power, which have been expanding rapidly in the country in recent years.

The share of renewable energy sources exceeded 40 percent; specifically, wind and solar power together accounted for nearly a quarter of all electricity.

This marked a symbolic milestone for China, which for years has been expanding its solar and wind power capacity while maintaining coal as the backbone of its power system to avoid electricity shortages.

However, despite the decline in coal’s share, its actual consumption continues to rise. In the first half of the year, output from thermal power plants increased due to growing demand for electricity, particularly from high-tech manufacturing, electric vehicle charging, and data centers.

The share of coal declined not because of a sharp drop in its use, but because clean energy was expanding at a faster pace.

At the same time, the rapid growth of renewable energy is creating new challenges for China’s power grid. Due to infrastructure limitations, a portion of the solar and wind energy generated goes unused.

In the first half of the year, the utilization rate for solar generation fell to 91.4% from 94.3% a year earlier, and for wind generation, to 90.9% from 93.5%.

To address the problem of grid overload, Beijing is increasing investment in energy infrastructure. Since the beginning of the year, investment in power grids has risen by 14% compared to last year, while investment in energy storage systems has increased by 74%.

China is also making more active use of battery energy storage systems. In 2025, their average operating time was 1,195 hours—nearly double that of 2023.

Source: Bloomberg.

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