China’s Coal and Gas Generation Slid 5.4% in September

Core Insights - Power generation from coal and gas in China declined by 5.4% in September due to increased hydropower output, with thermal power plant output falling to 517.5 billion kWh from 627.4 billion kWh in August [1] - Hydropower output increased by 31.9% year-on-year in September, contributing to a total power generation increase of 1.5% from a year earlier, totaling 826.2 billion kWh [2] - Despite fluctuations in hydrocarbon power output, emissions from the power generation sector in China reached a record low in the first half of the year, with non-hydrocarbon sources generating 23% more electricity compared to the previous year [3] Power Generation Trends - The output from coal and gas plants surged by 4.3% in July, reaching 602 billion kWh, driven by high demand during the summer heat [2] - The increase in wind and solar output is attributed to a rapid rise in generation capacity, although coal capacity is also increasing, with 11.29 GW of new coal power capacity approved in the first quarter of 2025 [4] Energy Security Measures - China is enhancing domestic gas production as part of its comprehensive energy security strategy, leading to a 12% annual decline in liquefied natural gas imports as of June, alongside increased pipeline imports from Russia [5]