Coal use falls in China as energy transition gathers pace

• 7 years ago (2017-03-01)
• David Flin

Asia 846 Coal 274

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China’s National Bureau of Statistics has released its 2016 Statistical Communique on Economic and Social Development. The figures indicate that, for the third year running, both production and consumption of coal has declined. Utilisation rates for coal-fired power plants has declined to 47.5 per cent, an historic low, down from a peak of 79 per cent capacity utilisation in 2011.

The consequence has been an unexpected $200 billion of stranded assets, with economic returns for coal-fired power plants dramatically below those anticipated at the time they were planned.

The trend is set to continue in 2017, and there are forecasts that China could become a coal net exporter over the coming decade.

Renewable energy, by contrast, has grown massively over the same period. China plans to invest $360 billion in new renewable energy capacity by 2020. A world record of 33.2 GW of solar power was installed in 2015. On-grid utility solar power grew 34 per cent year-on-year to 39 TWh in 2016.

China installed 17.3 GW of wind in 2016, and wind generation grew by 19 per cent to 211 TWh.