China demonstrated a remarkable energy dichotomy in 2025, achieving unprecedented growth in renewable energy capacity while simultaneously commissioning more coal-fired power plants than at any point in the previous decade. According to a joint research report published Tuesday by the Centre for Research on Energy and Clean Air and Global Energy Monitor, the world’s largest emitter activated over 50 major coal power units—each with generation capacity exceeding 1 gigawatt—alongside 78 gigawatts of total new coal capacity.
The scale of this expansion is staggering, with China commissioning more coal plants in a single year than India had throughout the entire preceding decade. This development raises crucial questions about whether the Asian giant can sufficiently reduce carbon emissions to mitigate climate change impacts.
Despite this coal surge, even larger additions of wind and solar capacity—315 gigawatts and 119 gigawatts respectively, according to government statistics—caused coal’s share in total electricity generation to decline marginally. Clean energy growth fully compensated for the entire increase in electricity demand, resulting in approximately 1% decrease in coal-powered electricity production.
The driving forces behind this paradoxical development are multifaceted. China’s ongoing economic development requires substantial energy expansion as more of its 1.4 billion citizens enter the middle class and acquire energy-intensive appliances. Additionally, power shortages in 2021-2022 heightened existing energy security concerns, prompting governmental directives for increased coal capacity that led to a construction approval surge.
Government authorities position coal as essential backup for weather-dependent renewables, particularly following droughts that affected hydropower in Western China. The National Development and Reform Commission has explicitly endorsed coal’s supporting and balancing role in the energy transition. However, analysts warn that excessive coal capacity could potentially delay the shift to cleaner energy sources due to political and financial pressures to maintain operational plants.
The report urges China to accelerate retirement of outdated coal facilities and commit to ensuring energy sector emissions don’t increase between 2025-2030 in its upcoming five-year plan. The ultimate climate impact will depend on whether coal plants remain limited to backup support rather than baseline electricity production.