The Wujing Power Station in Shanghai.
The guidelines permit new coal plants in regions with insufficient power capacity or where additional support is needed to balance fluctuations in renewable energy output. These facilities will be designed to operate safely and adjust quickly to meet varying electricity demands. The plan specifies that some new plants will operate at less than 20% capacity, while existing plants should maintain utilization rates between 25% and 40%.
Efficiency is a key focus of the new policy. Newly built plants must use coal more effectively, reducing carbon intensity by 10% to 20% compared to current levels. This reflects efforts to modernize the energy sector while addressing environmental concerns.
The action plan underscores the role of coal in maintaining a reliable energy supply, even as renewable energy sources expand. President Xi Jinping has emphasized sustainable development, stating: “We aim for energy consumption to become more efficient and balanced starting next year.” This aligns with efforts to optimize the energy mix while ensuring stability.
Data from early 2025 shows a decline in coal use, with thermal power output dropping 5.8% in January and February compared to the previous year. This reduction was influenced by a mild winter, slower economic activity, and a growing share of electricity from renewable sources. The trend highlights China’s ongoing shift toward cleaner energy, with coal plants increasingly serving as a flexible backup to renewables.
The guidelines reflect a balanced approach to energy planning, prioritizing reliability and efficiency while supporting the growth of sustainable power sources. By setting clear standards for new coal plants, the plan aims to address regional energy needs without compromising long-term environmental goals.
