24 Feb 2022

China Starts Building 33 GW of Coal Power in 2021, Most Since 2016

24 Feb 2022  by   

People drive past a coal-fired power plant in Shanghai, China October 21, 2021. REUTERS/Aly Song

China started building 33 gigawatts of new coal-fired power generation capacity last year, the most since 2016, research published on Thursday showed, a sign the country is falling back on fossil fuels as economic worries mount.

The newly added capacity under construction was three times more than the rest of the world combined, said Helsinki-based Centre for Research on Energy and Clean Air (CREA) and U.S. think tank Global Energy Monitor (GEM).

While new permits were suspended in 2021, they resumed in 2022, with five projects with a total capacity of 7.3 GW approved for construction in the first six weeks of the year, the research showed.

China also approved 74 million tonnes of replacement coal-based steel production capacity last year, more than the whole of the rest of the world.

CREA and GEM said, "There is no space for this new capacity to be utilised under the goals of the Paris Agreement", adding it could leave China with an additional $90 billion to $130 billion in stranded assets.

"Along with the real estate slowdown, the pandemic and pandemic control measures and expected headwinds to exports are adding urgency to boosting the industrial and construction sectors, which are the most carbon-intensive part of the economy," said CREA lead analyst Lauri Myllyvirta.

President Xi Jinping last month said China's low-carbon goals should not come at the expense of energy and food security or the "normal life" of ordinary people.

Sun Shouliang, director of the general department at China's Ministry of Ecology and Environment, told a briefing on Wednesday that the country had to "prioritise stability" and should "not set goals too high".

China will start cutting coal consumption from 2026, and is likely to put an additional 150 GW of coal-fired power into operation before then, researchers with the State Grid Corp of China have said.


More News