Search

Policy & Regulation

Tuesday
20 Apr 2021

China’s New Renewable Energy Target to Curb Coal Demand

20 Apr 2021  by argusmedia.com   

Beijing has set a preliminary target to increase wind and solar-based power generation in order to meet its longer-term emission goal. The move is set to curb the demand for coal-based electricity.

The country's top energy planning agency NEA aims to bring the share of solar and wind-based power generation to 11pc in this year's overall power output, and further increase the share to 16.5pc by 2025, according to a NEA document issued today. The document is circulated for opinion until 25 April.

The targeted share of wind and solar power would rise from 9.5pc in 2020, with wind power accounting for 6.1pc and solar 3.4pc.

NEA earlier this month set a goal for renewable power, including hydro, solar, wind and biomass, to account for over half of total installed capacity by 2025.

The additional wind and solar power output are most likely to reduce coal-fired power generation, which is normally responsible for high emissions. Coal power generation reached 4.63 trillion kWh last year, accounting for 60.7pc of overall power output.

The increase in wind and solar power could also reduce the share of coal power to 59.2pc this year, assuming that the share of other major energy sources, hydro and nuclear, remains relatively steady like they did in the past two years.

The forecasted rise in overall power demand could still raise coal-based power output this year. Overall power demand is expected to increase by 6-7pc this year from 7.62 trillion kWh in 2020, the China Electricity Council said in February. This could lead to an increase of 3-4pc in 2021 coal-fired power output, in light of higher renewable power, and boost coal burn at utilities. Chinese utilities consumed 2.19bn t of thermal coal last year, according to coal industry association CCTD.

Thermal power generation, which is largely based on coal in China, was 1.44 trillion kWh in January-March, the national bureau of statistics said today. This was up by 19pc on the year and was 13.8pc higher compare with the same period of last year, driven by a stronger economy.

Wind and solar power stood at 140.1TWh and 38.8TWh respectively last month, accounting for a combined 9.4pc of overall power output.

More News

Loading……