9% in 2025, marking a historic shift driven by new non-fossil generation that has finally outpaced demand growth. Power demand grew 5% in China in 2025, or 494 TWh, yet for the first time in a decade, coal-fired power generation did not increase to help meet this demand.
Instead, the incremental demand was met by carbon-free generation, with the rapid growth in renewables and constant development of nuclear and hydro capacity. The unprecedented expansion of renewable energy capacity, driven by decreasing costs, has made it competitive with fossil fuels.
This economic shift has unleashed massive investment, with investors and developers racing to capture market share. China's massive investment in power transmission infrastructure is critical to unlocking renewable potential that would otherwise be stranded in sparsely populated western China.
2% in 2025. The utilization of coal plants is expected to further decline to 32% by 2035 as portions of the fleet transition to reserve status.
However, some uncertainty remains regarding whether this trajectory will hold due to potential surges in power demand growth and extreme weather scenarios. Despite these uncertainties, China's commitment to reaching its peak carbon commitment by 2030 is clear, backed by concrete plans and massive investments.
The Chinese government's efforts demonstrate the country's determination to reduce its reliance on coal and transition towards a cleaner energy mix.
This shift away from coal marks a significant milestone in China's journey towards a low-carbon future, driven by the rapid growth of renewable energy capacity and decreasing costs. As the world's largest emitter, China's efforts to reduce its carbon footprint will have a profound impact on global climate efforts.
