China to Continue Coal-Fired Power Plant Construction Through 2027 to Ensure Grid Stability

China will permit the construction of new coal-fired power plants through at least 2027, Bloomberg reports, citing new government guidelines.

These guidelines also mandate that power generators guarantee their ability to compensate for fluctuations in electricity supply from intermittent renewable sources.

The action plan, issued by the National Development and Reform Commission (NDRC) and other agencies on March 26 and published online on Monday, stipulates that construction will be authorized in regions lacking sufficient existing power capacity or the capacity to stabilize electricity supply from wind and solar projects.

Power companies will be expected to construct coal plants capable of operating safely while swiftly adjusting power output to offset variations in renewable energy generation. Certain new plants will be required to operate for less than 20% of the time, while older generators must maintain minimum utilization rates of 25% to 40%.

Furthermore, new plants must achieve greater coal-burning efficiency, reducing their carbon intensity by 10% to 20% compared to the current fleet.

The plan underscores the ongoing significance of coal in China’s energy infrastructure, despite President Xi Jinping’s call for a reduction in consumption starting next year. China is the world’s largest producer and consumer of coal, and last year initiated construction on the most new coal plants in at least a decade.

Despite the expansion of coal-fired power generation, China’s reliance on the fuel has been declining. Thermal power plant output decreased by 5.8% in the first two months of the year due to a mild winter, a slowing economy impacting power demand, and an increased contribution from renewable energy sources.