China's Renewable Revolution: A Coal-Powered Paradox
China has achieved a remarkable milestone in its energy transition, surpassing fossil fuels in operating power capacity for the first time. This achievement is a testament to the country's decade-long investment in solar and wind energy, solidifying its position as the global leader in clean energy investment. However, beneath this success lies a paradox: China's reliance on coal power remains steadfast, despite its commitment to renewables.
As of February 2026, non-fossil fuel sources account for 52% of China's operating power capacity, while fossil fuels still hold 48%. This shift towards renewables is part of a broader trend, with China's clean energy capacity, including nuclear and hydropower, reaching record highs. The country's massive supply chain of panels and batteries is driving this transition, ensuring a more sustainable energy future.
But the coal industry is far from irrelevant. China's coal power capacity additions hit a decade-high in 2025, and it continues to lead the world in coal power fleet development, accounting for a staggering 71% of global coal power capacity under construction. This reliance on coal is driven by concerns over energy security and the need to maintain stable grids during peak demand and periods of low rainfall.
The paradox deepens as China's renewable energy boom has not diminished its coal power sector. The country's coal power capacity has increased by 362 GW over the past decade, and in 2025 alone, it commissioned 78 GW of new coal power capacity, despite a decline in coal power generation and the growth of clean energy.
The Center for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) report highlights a surge in coal power project proposals, reaching a record high of 161 GW, which could lock China into years of coal expansion beyond its power demand growth and climate goals. This paradoxical situation raises questions about the country's energy strategy and its ability to balance its commitment to renewables with its reliance on coal.
Despite its leadership in energy transition investments, China's paradoxical approach to coal power continues to shape its energy landscape. The country's domestic manufacturing chain supports both renewable expansion and coal-based baseload capacity, showcasing a complex energy strategy that is both forward-thinking and rooted in traditional energy sources.
