China generates less than half of its electricity from coal for the first time

• Coal's share of electricity generation dropped below 50% for the six-month period ending in June, a historic first for China
• China targets wind and solar to reach 30% of its power mix by 2030, but experts predict this goal could be achieved by 2028 due to rooftop solar-plus-battery deployment
• Despite the declining share, more coal power is being built this year than last to meet surging electricity demand, with coal consumption set to peak no later than 2030

Summary: China's Coal Power Generation Falls Below 50% for First Time

Key Development:

China, the world's largest coal consumer, generated less than 50% of its electricity from coal during the first half of the year through June—a historic milestone reflecting the country's transition to renewable energy.

Main Facts & Figures:

• Coal's share of electricity generation dropped below 50% for the first time
• China aims for wind and solar to comprise 30% of its power mix by 2030
• Coal consumption is targeted to peak no later than 2030
• For comparison, India's coal and lignite accounted for 69% of power generation last year

Market Implications:

Despite coal's declining share, China plans to add more coal power capacity this year than last due to rapidly climbing electricity demand. Key demand drivers include:

• Increased electric vehicle adoption
• Expansion of AI data centers
• Continued export growth

Outlook:

Greenpeace East Asia projects China could achieve its 2030 renewable energy target by 2028, two years ahead of schedule. The accelerated timeline is attributed to increased rooftop solar-plus-battery deployment. Energy storage systems, combined with demand response mechanisms and flexible electricity markets, are expected to facilitate higher penetration of distributed solar power and help meet growing demand with renewables rather than fossil fuels.

Sector Context:

The milestone underscores China's progress in energy transition while highlighting the ongoing challenge of balancing decarbonization goals with surging electricity demand from emerging sectors and industrial growth.