The country will maintain stable coal production

According to the China National Coal Association (CNCA), Chinese coal consumption is expected to grow moderately in 2025, with a slight increase from 2024 levels, driven by higher electricity demand and stabilization in key industrial sectors.

Electricity generation from coal-fired power plants is expected to increase by 4.5% in 2025, adding about 290 billion kilowatt hours, as the country steps up efforts to increase efficient investments and stabilize the real estate market through policy measures , said Zhang Hong, deputy secretary. -general of the CNCA.

The metallurgical and building materials industries are expected to stabilize and recover, with domestic production of key coal-consuming products such as crude steel and cement expected to maintain stable production levels, it said.

According to the association, although coal production is expected to increase modestly, production growth will be concentrated in the coal-rich regions of Shanxi, Shaanxi, Inner Mongolia and Xinjiang Uygur Autonomous Regions.

Xinjiang, in particular, is expected to be the largest contributor to increased coal production. The overall coal market is expected to maintain a balanced outlook between supply and demand throughout 2025, although seasonal fluctuations between surplus and tight conditions will persist, it said.

The association forecasts that in 2025, the coal market will remain largely balanced, with supply and demand conditions oscillating between surplus periods and tight periods due to seasonal variations.

Industry experts say the expected increase in coal production is in line with the government’s focus on energy security, particularly amid growing concerns over supply disruptions and growing demand.

Coal will continue to play a key role in ensuring national energy supplies as China’s economy seeks to stabilize and recover, said Lin Boqiang, director of China Institute for Energy Policy Studies. Xiamen University.

The government’s focus on stable coal supplies has been reinforced by recent legal changes, including China’s first energy law, which is due to take full effect on January 1 and encourages coal contracts in the long term to strengthen market resilience. These contracts are seen as crucial to supporting high-quality development while ensuring energy security in China’s evolving energy landscape.

China continues to prioritize stable coal production and supply throughout 2024, with the proportion of smart coal capacity increasing to more than 50% of total capacity, after transforming and upgrading 180 million kilowatts of coal-fired power plants and eliminated more than 8 million kW of obsolete power plants. capacity, according to the National Energy Administration.

More than 95 percent of coal-fired power plants across the country now meet ultra-low emissions standards.

Many domestic coal companies are making deeper forays into integrating clean coal energy and carbon capture, utilization and storage technologies to offset carbon emissions and achieve carbon-free production.

According to the National Bureau of Statistics, the cumulative growth rate of national coal-fired electricity generation fell from 9.7 percent at the start of the year to 0.5 percent in July. Compared to 2023, annual coal consumption for coal-based power generation is expected to decrease by around 100 million tonnes per year, it said.

From the perspective of major coal-consuming sectors, the metallurgy and construction materials industries, which account for nearly a quarter of the country’s total coal consumption, have seen a continuous decline in production, leading to a reduction sustainable coal consumption, the association said. .

Total coal consumption in China is nearing a record plateau, according to China Petroleum and Chemical Corp. In 2024, coal consumption is expected to reach 4.85 billion tonnes, or 54% of total energy consumption.

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