Renewables push China's fossil‑fuelled power into first annual drop in 10 years

China's mostly coal-based thermal power generation fell in 2025 for the first time in 10 years, government data showed on Monday, as growing renewable generation met growth in electricity demand even as overall power usage hit a record.

The data is a positive signal for the decarbonisation of China's power sector as China sets a course for carbon emissions to peak by 2030. Still, coal output edged up to a record high last year.

Thermal electricity, generated mostly by coal-fired capacity with a small amount from natural gas, fell 1 percent in 2025 to 6.29 trillion kilowatt-hours (kWh), according to the National Bureau of Statistics (NBS).

It fell more sharply in December, down by 3.2 percent, from a year earlier, the data showed.

The data reflects output from industrial enterprises with annual revenue of more than 20 million yuan.

The National Energy Administration announced on Saturday that China's electricity consumption had climbed 5 percent to a record high, surpassing 10 trillion kWh for the first time.

That was more than the combined consumption of the European Union, Russia, India and Japan in 2024, driven by rapid consumption growth in internet and related services and EV manufacturing.

The NEA statistics offer a fuller picture of power use than the NBS data, which omits some smaller-scale renewables generation, particularly from solar. The NBS statistics showed power generation reached 9.72 trillion kWh last year, up 2.2 percent compared with 2024.

Hydropower grew at a steady pace, up 4.1 percent in December and rising 2.8 percent for the full year, the NBS data showed. Nuclear power output rose 3.1 in December and 7.7 percent in 2025, respectively.

Thermal power generation is unlikely to accelerate in 2026 as renewables growth continues apace.

"This trend towards a structural shift in power generation is difficult to reverse," said Feng Dongbin, vice general manager at Fenwei Digital Information Technology, which operates Chinese coal analytics platform Sxcoal.

Reuters