China's coal output stalls as renewable power fuels rapid electrification
A new Ember analysis shows coal generation has stopped growing in most Chinese provinces, while renewable energy drives a surge in electricity use across industry.
Ember's recent study finds that coal-fired electricity generation has ceased expanding in 17 out of 26 Chinese provinces, indicating a plateau in fossil-fuel use. Eight of the country's eleven key industrial sectors are also approaching peak consumption of coal and other fossil fuels. The report attributes the slowdown to a rapid rise in electrification, especially in energy-intensive parts of the economy, rather than to deindustrialisation.
Analysts say China is "building while breaking," replacing legacy power infrastructure with renewable sources. This trend undermines the expectation that worldwide fossil-fuel demand will continue to climb, a premise that underpins many investment strategies. The president of the International Society of Energy Transition Studies warned that nations reliant on fossil-fuel export revenues must act now while those earnings persist.
Why it matters
China's pivot away from coal reshapes global energy markets and challenges forecasts of rising fossil-fuel demand.
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