China’s carbon neutral push gathers pace as coal-fired power plants drop below 50 per cent for first time
- China is the world’s largest producer and consumer of coal, but it has committed to achieving carbon neutrality in 2060
- Fitch Ratings report shows a surge in the use of wind, solar and hydropower, although coal-fired generators still produced 60 per cent of the power last year
China’s coal-fired power plants fell to less than 50 per cent of its total power generation mix for the first time last year, while separately, power generated from non-fossil fuels rose to make up more than a third of the country’s power output, according to a new report.
Coal-fired generators still produced 60 per cent of the nation’s power needs last year, with non-fossil fuels now accounting for 34 per cent of China’s total power output in 2020 – 1 per cent higher than in 2019.
We expect the share to fall by at least 3 percentage points year on year in 2021, as China pushes towards carbon neutrality and renewables addition stays strong
“The share of coal-fired power capacity in China’s fuel mix dropped to below 50 per cent for the first time in 2020, given strong renewable installations,” said Fitch Ratings analysts Diana Xia and Penny Chen in the quarterly China Power Watch report published by the ratings and research firm on Thursday.
“We expect the share to fall by at least 3 percentage points year on year in 2021, as China pushes towards carbon neutrality and renewables addition stays strong.”
The change in the power generation mix was driven by China’s wind power capacity rising by 178 per cent, its solar energy capacity by 60 per cent and its hydropower capacity by 217 per cent, the report said.
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The overall contribution from coal is not likely to drop quickly in the short term, but it is expected that the number of non-fossil fuel installations will continue to rise steadily this year.