China’s fast-growing renewable energy sector is being undermined by a simultaneous, large-scale expansion in coal power. According to a new analysis by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM), China added an “unprecedented” 356 gigawatts of solar and wind capacity in 2024, nearly matching the entire U.S. capacity for the year. However, this clean energy boom is counterbalanced by the approval and construction of massive new coal projects—66.7 GW of approved capacity, 94.5 GW under construction, plus resumed projects—that could lock the country into long-term fossil fuel dependence.
The report points out that outdated power purchase agreements, established for energy security since 2020, mandate minimum coal purchases by local governments. This arrangement has led to an unexpected decline in renewable energy utilization later in 2024, with solar output dropping and wind curtailment rising. Experts warn that these factors, driven by industry interests rather than actual grid needs, are preventing a true energy transition and instead fostering an “energy addition” model that continues to favor coal.
In essence, despite being the world’s largest renewable energy producer and pledging to peak carbon emissions before the decade’s end with a goal of carbon neutrality by 2060, China’s simultaneous coal investments could jeopardize its clean energy ambitions unless urgent policy reforms are implemented.
Source: Eco Watch