Otis Singleton
China's main source of electricity is fossil fuels, with coal alone accounting for over half of the country's electricity generation. In 2023, fossil fuels made up 61% of the country's electricity, with coal specifically generating 62% of electricity that year. China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity. However, renewable energy sources are becoming increasingly important in China's electricity generation, with the country producing the most renewable energy worldwide.
| Characteristics | Values |
|---|---|
| Main Source of Electricity | Coal |
| Percentage of Electricity from Coal | 62% in 2021 |
| Total Installed Electric Generation Capacity in 2023 | 2.92 TW |
| Percentage of Renewable Energy Sources in 2023 | 53.9% |
| Total Power Generation Capacity from Renewable Sources in 2023 | 1.26 TW |
| Power Generation Capacity from Wind Power in 2023 | 376 GW |
| Power Generation Capacity from Solar Power in 2023 | 425 GW |
| Number of Nuclear Plants in Operation as of February 2023 | 55 |
| Power Generation Capacity from Nuclear Plants in Operation in February 2023 | 57 GW |
| Percentage of Electricity Used by Industry | Over 1/3 |
| Voltage in Mainland China | 220 V, 50 Hz |
| Voltage in Hong Kong and Macau | 220 V, 50 Hz |
| Type of Power Plugs Used in Mainland China | Type A and I |
| Type of Power Plugs Used in Hong Kong and Macau | Type G |
| Obstacles to Green Energy Transition | Distance between Sources and Consumers |
| Government Initiatives to Promote | Demand Response Mechanisms, Tariff Reforms, Pricing Strategies |
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What You'll Learn
Coal power
China is the world's largest producer and consumer of coal and coal power. In 2021, China's coal-based power generation capacity was 1080 GW, about half of the total installed capacity of power stations in China. In 2020, coal-fired power stations generated 57% of China's electricity. This figure increased to 62% in 2021, and in 2023, fossil fuels still made up 61% of the country's electricity generation. China is responsible for over half of the world's coal-fired power generation.
In 2024, China began construction on 94.5 GW of new coal-fired power capacity, the highest annual addition since 2015. This resurgence in coal-fired power plant construction has been driven by investment from the coal-mining sector and is seen as undermining the country's clean energy progress and climate commitments. However, analysts expect China's large-scale adoption of renewable energy sources to gradually reduce coal's share of electricity generation.
China's coal-fired power plants face challenges due to falling capacity factors, with many plants operating below capacity or at a net loss. The National Energy Administration (NEA) has taken strong action to curb the construction of new coal-fired power plants, and in 2017, canceled 103 coal power plants, eliminating 120 GW of future coal-fired capacity. In addition, China has instituted administrative caps on coal output in major coal-producing provinces, contributing to electricity outages in some regions.
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Renewable energy sources
China's main source of electricity is coal power, which generated 57% of electricity in 2020, 62% in 2021, and 61% in 2023. However, China has been redirecting its investment efforts towards clean energy initiatives, with renewable energy sources playing an increasingly important role in electricity generation.
China has become a world leader in renewable energy technologies, particularly solar photovoltaic technology. The country has favourable conditions for the installation of wind and solar power, with its northwestern regions abundant in wind and sun, as well as hosting the country's hydroelectric dams.
Solar Power
China has been a leading player in the solar market, with its six biggest solar companies having a combined value of over $15 billion. In 2015, China became the world's largest producer of photovoltaic power, with 43 GW of total installed capacity. From 2005 to 2014, the production of solar cells in China expanded 100-fold.
Wind Power
Wind power is the second most crucial renewable energy source for China. From 2014 to 2023, the cumulative installed wind power capacity more than quadrupled to 440 gigawatts.
Hydropower
From 2004 to 2022, domestic hydropower consumption increased more than threefold to over 12 exajoules.
Geothermal Energy
China is the second-largest direct user of geothermal energy in the world, with 181 geothermal systems identified on mainland China as of 2006.
Nuclear Power
Nuclear power also plays an increasing role in China's national electricity sector, with 55 nuclear plants in operation, 22 under construction, and over 70 planned as of February 2023.
China sees renewables as a source of energy security and a means to reduce carbon emissions. The country is the world's largest investor in renewable energy, accounting for 45% of global investments in 2017. China has also been a leading source of technology transfer to other developing countries in the clean energy sector.
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Nuclear energy
China has been heavily reliant on coal for electricity generation, which has contributed to air pollution and greenhouse gas emissions. To address these issues, the country has invested in clean energy initiatives and aims to reduce its reliance on fossil fuels. Nuclear energy is one such alternative source of electricity that China has been pursuing.
The development of nuclear power in China initially began in the 1950s, during the Cold War, with cooperation from the USSR. This period saw the establishment of nuclear research facilities and the creation of the China National Nuclear Corporation (CNNC) in 1955. However, in 1959, the USSR withdrew its nuclear aid to China, leading to a shift towards independent nuclear power development.
In 1984, China constructed its first independently designed and built nuclear power plant, the Qinshan Nuclear Power Plant, which was connected to the grid in 1991. As of 2024, China has added over 34 gigawatts (GW) of nuclear power capacity in the past decade, resulting in 55 operating nuclear reactors with a total net capacity of 53.2 GW. Additionally, 23 reactors are under construction, expected to add about 23.7 GW to China's nuclear power capacity over the next decade.
The main nuclear operators in China are the China National Nuclear Corporation (CNNC) and the China General Nuclear Power Group (CGN). The country's nuclear fleet consists primarily of pressurized water reactors (PWR), including U.S. Westinghouse-designed AP1000s and French Orano European Power Reactors. China is also developing the Linglong-1 ACP100 reactor, a domestically designed small modular reactor based on AP1000 technology.
Nuclear power plays an increasingly important role in China's electricity sector. While it accounted for only about 5% of China's cumulative power generation in 2022, it is a key component of the country's long-term strategy to meet electricity demands and address environmental concerns. China has implemented policies and targets to reduce carbon emissions and increase the share of non-fossil fuels in its energy mix, including nuclear and renewable energy sources.
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Greenhouse gas emissions
China's main source of electricity is coal, which is a major source of greenhouse gas emissions. In 2020, coal-fired power stations generated 57% of electricity in China, and this figure rose to 62% in 2021. China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity. As a result, China emitted over 12.6 gigatonnes of CO2eq of greenhouse gases in 2023, accounting for 35% of the world's total emissions.
China's greenhouse gas emissions are not limited to carbon dioxide. Methane (CH4), nitrous oxide (N2O), and fluorinated gases collectively accounted for nearly 17.5% of the country's total emissions in 2018. In addition, the production and consumption of cement and steel are significant contributors to China's greenhouse gas emissions, with cement estimated to contribute 15% and steel estimated to contribute 15% to 20%.
China has faced widespread criticism from the international community for being the world's largest emitter of greenhouse gases. In response, the Chinese government has introduced policies to promote the development of demand response and incentivize electricity users to adjust their consumption patterns to reduce demand during peak hours. China has also redirected investment efforts towards clean energy initiatives, with the share of electricity generation from renewables increasing in recent years.
In 2024, China recorded a 3% decrease in greenhouse gas emissions compared to the previous year, largely due to an expansion in wind and solar power capacities. However, challenges remain, including the technical difficulties of integrating solar energy into the existing power grid and a continued dependence on coal. China's total historical greenhouse gas emissions surpassed those of the European Union in 2024, but they still trail the United States.
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Energy policies
China's energy sector has undergone remarkable expansion since the country's rapid economic development began in 1978. The country's main source of electricity is coal power, which accounted for 62% of electricity generation in 2021. China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity.
China's government has introduced a number of policies to promote the development of demand response, such as the 2012 "Interim Measures for the Management of Pilot Cities with Central Fiscal Funds to Support Electricity Demand Side Management". The demand response (DR) mechanism incentivizes electricity users to adjust their consumption patterns based on signals from grid operators, reducing demand during peak hours (peak shaving) or increasing it during off-peak hours (valley filling). This flexibility is critical to maintaining grid stability and ensuring efficient use of energy resources.
China has also been redirecting investment efforts towards clean energy initiatives with the aim of reducing pollution and emission levels. As the largest global polluter, China has designated the development of renewable energy sources as a major objective of its economic policies. The country already produces the most renewable energy worldwide, with hydro-electric power, biomass, wind power, and solar power as its main sources. In 2023, China's total installed electric generation capacity was 2.92 TW, of which 1.26 TW was renewable, including 376 GW from wind power and 425 GW from solar power. Nuclear energy also plays an increasingly important role in the national electricity sector, with 55 nuclear plants in operation as of February 2023.
To improve the efficiency of the power system and reduce the risk of localized energy shortages, China has made the creation of a unified national grid system a top economic priority. The country has built the world's leading ultra-high-voltage electricity transmission system, allowing for the transmission of energy over large distances. This system is particularly important given the distance between green energy sources and consumers, with most people and industries located in the coastal provinces.
In the future, energy reforms in China will focus on power market restructuring and the creation of appropriate governance structures to maintain a level playing field for energy companies to compete in the newly restructured market. The government has also introduced programmes of industry restructuring that will have significant effects on the energy sector in the coming decades.
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Frequently asked questions
Coal is China's main source of electricity, accounting for 62% of electricity generation in 2021.
China also uses renewable energy sources such as hydro-electric power, solar power, wind power, and biomass. Nuclear energy also plays an increasing role in the national electricity sector.
Coal power is a major source of greenhouse gas emissions and air pollution, contributing to global warming and climate change.
Yes, China has redirected investment efforts toward clean energy initiatives with the aim of reducing pollution and emission levels. China produced the most renewable energy worldwide in 2023.
