China deepens its dependence on coal by speeding up approvals
China has been speeding up approvals for new coal-fired power plants amid increasing risks of electricity shortages, according to research from Greenpeace.
Adding generation capacity for its mainstay fuel has been a tried-and-true strategy for China during its rapid economic rise over the past three decades. The pace of new approvals quickened in late 2021 and early this year after power shortages crippled the economy in the fall.
But China’s power problems have nothing to do with not having enough generation -- in fact there’s already an overcapacity of coal power plants, according to Greenpeace analyst Wu Jinghan. To solve the problem, the government needs to focus on things like grid integration and energy storage. A continued emphasis on new coal plants will only distract from the real solutions, Wu said.
Greenpeace’s research shows that 8.63 GW of coal-fired capacity was approved in the first quarter of 2022, equivalent to 47% of the new permits awarded over the whole of 2021.
The scorching summer heat is further exposing China’s over-reliance on coal, as air-conditioning needs run down supplies of the fuel that’s most to blame for a warming planet. Elevated prices are also hurting the profitability of utilities due to the significant increases in procurement costs, according to a report in the Economic Daily.
“An overcapacity of this one energy source is a major hurdle for energy security, as well as China’s energy transition,” said Wu.
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