China to keep building coal plants through 2027, state planner says

China plans to keep building coal-fired power plants through 2027 in regions where they are needed to meet peak power demand or stabilise the grid, according to government guidelines for upgrading the coal power system released on Monday.

That policy may raise questions about China's commitment to phasing down coal use during the 2026-2030 period, although it says new coal projects are considered a back-up for renewable generation whose output depends on sunlight and wind conditions.

The guidelines, issued by the state planner and energy regulator, say that newly built coal plants should have 10-20% lower carbon emissions per unit of power output than the 2024 fleet, and also call for upgrades to some existing coal plants to meet those conditions.

Newly built and upgraded coal plants should also be able to safely and reliably adjust their output to help meet peak power demand.

The plan follows a report from the China Coal Association last week that said China's coal consumption would not peak until 2028 - later than other forecasts that said China's coal consumption could peak this year.

Rising coal usage in the power and chemicals sectors this year will support a small uptick in consumption, the association said, offsetting declining demand from the steel and building material industries.