
By Sama Marwan,
New Chinese government guidelines revealed on Monday show that Beijing will permit the construction of coal-fired power plants until at least 2027. These guidelines also require power generation companies to ensure their ability to fill supply gaps caused by the intermittent nature of renewable energy sources.
The National Development and Reform Commission and other agencies announced in an action plan that construction will be allowed in areas lacking current capacity or the ability to balance electricity supply from wind and solar power projects, according to Bloomberg.
Energy companies are expected to operate coal-fired plants safely while rapidly adjusting energy output to help balance renewable energy production.
According to the plan:
- Some new plants will be required to operate less than 20% of the time.
- Older generators must maintain utilization rates between 25% and 40%.
- New plants must burn coal more efficiently, with carbon intensity reduced by 10% to 20% compared to current plant averages.
The plan underscores the ongoing importance of fossil fuels in China’s energy system, even as President Xi Jinping has called for a decline in coal consumption starting next year.
China is responsible for more than half of the world’s coal production, and last year, it began building the largest number of new coal power plants in over a decade.