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Coal Power Station Approvals in China Decline

August 20, 2024

Chinese authorities’ approvals for new coal-fired power stations have sharply declined after a surge in permits over the past two years that raised concerns about the government’s commitment to combating climate change. A report released by Greenpeace East Asia and the Shanghai Institutes for International Studies on Tuesday concluded that the first half of this year saw approvals for 14 new stations with a total capacity of 10.3 gigawatts, an 80% decrease compared to the same period last year. Although China leads the world in solar and wind energy use, the government asserts that coal plants are still necessary for peak demand periods, as wind and solar power are less reliable. In June, the National Energy Administration unveiled a three-year plan to upgrade existing coal power units and equip new units with low-carbon technologies. This month, the government also launched a plan to “accelerate the construction of a new energy system” to address bottlenecks and other challenges, including expanding the transmission of renewable energy. Additionally, China is looking to nuclear power to achieve its carbon reduction goals, with the State Council approving five nuclear projects on Monday, comprising 11 units at a total cost of 200 billion yuan (approximately $28 billion).