China’s new coal power approvals decline in 9M - Asian Power
Published November 26, 2025
Decline in New Coal Power Approvals in China for First Nine Months
In the first nine months of the year, China has experienced a notable decrease in the approvals for new coal power projects. This trend reflects a significant shift in the country's energy policy, which is increasingly leaning towards renewable energy sources. The data indicates a marked contrast to previous years, where coal power had been a dominant force in the energy sector.
According to the National Energy Administration (NEA), the number of newly approved coal power projects has dropped sharply. Specifically, during the period from January to September, only 14.1 gigawatts (GW) of new coal power capacity was approved. This figure represents a staggering decline of 73% compared to the same period last year, where approvals reached 52.1 GW.
This downturn in coal power approvals is part of China's broader strategy to reduce carbon emissions and transition towards cleaner energy alternatives. The Chinese government has set ambitious targets for reducing its carbon footprint, aiming for peak carbon emissions by 2030 and carbon neutrality by 2060. As a result, the focus has shifted to renewable energy sources such as solar, wind, and hydropower.
In the first three quarters of 2023, the approval of new renewable energy projects has surged. The NEA reported that approximately 66.5 GW of new solar and wind capacity was approved during the same timeframe. This is a significant increase compared to the previous year, where only 41.9 GW was approved. The growth in renewable energy approvals underscores the government's commitment to fostering a sustainable energy landscape.
Experts attribute this shift to several factors, including the increasing cost-effectiveness of renewable energy technologies and the growing public and governmental pressure to address climate change. The Chinese government has implemented various policies and incentives to promote the development of renewable energy, including subsidies and tax breaks for renewable energy projects.
Despite the decline in coal power approvals, the existing coal power capacity in China remains substantial. As of the end of September 2023, China had an operational coal power capacity of approximately 1,070 GW. This figure accounts for over 50% of the country's total power generation capacity. However, the government is now focusing on keeping the existing coal plants operational while limiting the construction of new facilities.
In addition to the decline in new coal power approvals, the NEA has also emphasized the importance of improving energy efficiency and promoting energy storage technologies. The integration of energy storage systems is seen as a crucial component in balancing the intermittent nature of renewable energy sources. This will enable China to enhance its energy security and reliability while transitioning to a more sustainable energy mix.
As China continues to navigate its energy transition, the implications for the global coal market are significant. The decline in new coal power approvals may lead to a reduction in coal demand, impacting international coal prices and trade dynamics. Countries that rely heavily on coal exports to China may need to reassess their energy strategies in light of this evolving landscape.
Furthermore, the international community is closely watching China's energy transition as it is a key player in the global fight against climate change. The country is the world's largest emitter of greenhouse gases, and its efforts to reduce coal dependency will play a crucial role in achieving global climate goals.
In conclusion, the decrease in new coal power approvals in China during the first nine months of the year marks a significant turning point in the country's energy policy. With a strong emphasis on renewable energy development and a commitment to reducing carbon emissions, China is positioning itself as a leader in the global transition to sustainable energy. The ongoing developments in this sector will be pivotal for both the domestic and international energy markets in the years to come.
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