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China to quit coal baseload power by 2050: Think tank

  • Market: Coal, Electricity
  • 20/11/24

Coal power in China will shift from being a baseload to a backup power source by 2050, according to a government-linked think tank last week.

China is expected to move to a cleaner energy system with solar and wind power as its core, displacing coal as the main power source, according to the China Energy Transformation Outlook 2024 released on 13 November at the Cop 29 climate conference in Baku, Azerbaijan. The Energy Research Institute of the Chinese Academy of Macroeconomic Research, a think tank under China's National Development and Reform Commission, was the key contributor to this report.

Installed renewable power capacity is projected to account for 95pc of China's potential total capacity of 10,530-11,820GW in 2060, before which China aims to achieve carbon neutrality, according to the report. Renewable sources are expected to generate 93pc of power in 2060.

This would be a significant change from the current mix in China. Renewables made up 52pc of total capacity of 2,920GW in 2023, while thermal power capacity was 48pc, according to China's National Energy Administration. Renewable sources and thermal power, which is mainly coal-fired, generated 30pc and 70pc of power respectively in 2023, according to the country's National Bureau of Statistics.

"By 2050, coal power will preliminarily serve as an emergency and backup resource for the grid, providing essential support in critical power events," the report said.

Solar and wind

Significant growth in solar and wind installations is expected to lead China's energy transition, supported by lower costs. Solar power capacity is projected to reach 6,370-7,240GW in 2060, accounting for two-thirds of total capacity, while wind power capacity could reach 2,950-3,460GW, according to the report. Among the installed solar capacity, 70pc will be distributed systems, which are smaller power generation systems compared to large, utility-scale systems.

Costs of solar and wind power generation in China have fallen by 80pc and 60pc respectively over the past decade, the report said. The report elaborated on ways to manage the volatility of renewable sources via various energy storage systems.

Solar power output usually increases rapidly during the day with abundant sunlight. When output exceeds the power load, energy is stored in pumped hydro, chemical, hydrogen and electrofuels, electric vehicles and industry demand response storages. These storage systems can then discharge electricity to generate power in the evening when solar output stops, and when wind output is low.

New energy storage solutions are expected to support increased electrification in China, which will play a key role in reducing the country's carbon emissions, the report said. Electrification involves replacing technologies or processes that use fossil fuels with electrically-powered equivalents, such as electric vehicles.


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02/05/25

Australia's Coalition eyes power, resource funding cuts

Australia's Coalition eyes power, resource funding cuts

Sydney, 2 May (Argus) — Australia's federal Coalition opposition has announced it will cut key energy rebates and resource sector subsidies, if elected on 3 May, to reduce forecast future budget deficits. The Peter Dutton-led opposition will cut programs, including the Labor government's A$20bn ($12.8bn) Rewiring the Nation transmission plan, and the A$15bn National Reconstruction Fund aimed at underwriting green manufacturing using domestic minerals. It will also unwind electric vehicle tax concessions to save A$3.2bn, and cancel planned production tax credits for critical minerals processing and green hydrogen estimated to cost A$14.7bn. Combined savings measures will improve the budget's position by A$13.9bn over the four years to 2028-29, the Coalition said on 1 May, cutting debt by A$40bn during the same timeframe. The announcement comes as opinion polls show Australia's next federal government is likely to force one of the two major parties into minority, after a campaign where cost-of-living relief promises have trumped economic reform policy. The centre-left Labor party is more likely than the conservative Coalition to form government at the 3 May poll. It holds a thin majority of just three seats in parliament's main chamber, the House of Representatives, meaning a swing against it would force it to deal with minor parties such as the Greens and independent groupings. Promising a stable government, as Australia emerged from Covid-19, Labor had benefited from a resources boom as Russia's invasion of Ukraine led LNG and coal receipts to skyrocket and China's emergence from lockdowns revitalised its demand for iron ore, which jointly form the nation's main commodity exports. But as markets adjust to a period of protectionist trade policy and predictions of a slowdown in global growth abound, economists have criticised the major parties' reluctance to embrace major reform on areas such as taxation, while continuing to spend at elevated levels post-pandemic. Australia's resource and energy commodity exports are forecast to fall to A$387bn in the fiscal year to 30 June 2025 from A$415bn in 2023–24. The Office of the Chief Economist is predicting further falls over the next five years, reaching A$343bn in 2029-30, lowering expected government revenue from company tax and royalties. Gas The Coalition has pledged a domestic reservation scheme for the east coast, forcing 50-100PJ (1.34bn-2.68bn m³/yr) into the grid by penalising spot LNG cargoes. Australia's upstream lobby has opposed this, but rapidly declining reserves offshore Victoria state mean gas may need to be imported to the nation's south, depending on the success of electrification efforts and an uncertain timeline for coal-fired power retirements. Labor has resisted such further gas interventions , but it is unclear how it will reverse a trend of rising gas prices and diminishing domestic supply, despite releasing a future gas plan last year. The party is promising 82pc renewables nationally by 2030, meaning it will have to nearly double the 2025 year-to-date figure of 42pc. This could require 15GW of gas-fired capacity by 2050 to firm the grid. On environmental policy, narrowing polls mean Labor's likely partners in government could be the anti-fossil fuel Greens and climate-focused independents — just some of the present crossbench of 16 out of a parliament of 151. The crossbench may drive a climate trigger requirement in any changes to environmental assessments, which could rule out new or brownfield coal and gas projects. Coal has been conspicuously absent from policy debates, but Labor has criticised the Coalition's nuclear energy policy as expensive and unproven, while the Coalition has said Labor's renewables-led grid would be unstable and costly because of new transmission requirements. The impact of the US tariff shock that dominated opening days of the month-long election campaign remains unclear. Unlike Canada, Australia is yet to be directly targeted by US president Trump's rhetoric on trade balances and barriers. But the global unease that has set in could assist Labor's prime minister Anthony Albanese, as he presents an image of continuity in an uncertain world economy. Australia's main exposure to Trump tariffs is via China, its largest trading partner and destination for about 35pc of exports, including metal concentrates, ores, coal and LNG. A downturn in the world's largest manufacturer would spell difficult times ahead for Australia, as it grapples with balancing its budget in a normalising commodity market. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India extends directive to lift coal-fired generation


02/05/25
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02/05/25

India extends directive to lift coal-fired generation

Singapore, 2 May (Argus) — India's power ministry has extended its directive requiring imported coal-fired utilities to boost generation by two months until 30 June, a move that could support demand for seaborne coal over the peak summer period. The directive covers imported coal-fired plants with a combined capacity of 17.5GW and was previously set to expire on 30 April. The decision could support India's coal imports, which have remained lacklustre so far in 2025. India imported 38.29mn t of thermal coal in January-March, down from 41.87mn t a year earlier, according to data from shipbroker Interocean. Imports may have remained under pressure in April, with India's seaborne thermal coal receipts estimated at 15.77mn t for the month, down from 15.84mn t a year earlier, according to trade analytics platform Kpler. India's coal-fired generation remained above the historical average in April in line with the uptick in power demand, although actual coal burn was down on the month and year. India's coal-fired generation — which meets most of its power requirements — stood at 113.48 TWh in April, down from 116.58 TWh a year earlier and 117.95 TWh a month earlier, according to data from the Central Electricity Authority (CEA). The extension of the order appears to be a pre-emptive measure by the authorities to ensure imported coal-fired utilities are well stocked to meet any uptick in power demand. The country is currently sitting on a surplus of domestic coal, with elevated inventory at its utilities. Delhi has been proactively directing utilities to boost output since mid-2022 to cater for seasonal surges in power demand. Combined coal inventories at Indian power plants stood at 56.69mn t as of 30 April, up from 47.92mn t a year earlier, but down from 58.11mn t as of 31 March, CEA data show. Inventories at state-controlled Coal India (CIL) also remained high, according to market participants. By Saurabh Chaturvedi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US factory activity contracts for 2nd month in April


01/05/25
News
01/05/25

US factory activity contracts for 2nd month in April

Houston, 1 May (Argus) — US manufacturing activity contracted in April for a second month, as output and new orders slowed on tariff policy uncertainty, while price gains accelerated. The Institute for Supply Management's manufacturing purchasing managers' index (PMI) fell to 48.7 in April, down from 49 in March and the lowest since last November. The threshold between contraction and expansion is 50. The two-month contraction in manufacturing activity follows a two-month expansion preceded by 26 consecutive months of contraction. ISM's services PMI, a separate report that tracks the biggest part of the economy, showed nine months of expansion through March. "Demand and production retreated and de-staffing continued, as panelists' companies responded to an unknown economic environment," ISM said Thursday. "Prices growth accelerated slightly due to tariffs, causing new-order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth." The manufacturing data follows a report Wednesday that showed the US economy contracted at an annualized 0.3pc pace in the first quarter as businesses boosted imports and stocked up on goods ahead of US import tariffs. The ISM's new-orders index came in at 47.2, higher than 45.2 in March but showing contraction for a third month. The production index fell to 44, showing a deepening contraction from 48.3 in the prior month. Employment rose by 1.8 points to 46.5, showing a slowing contraction. New export orders contracted faster at 43.1 in April, while imports entered contraction at 47.1 after barely growing, at 50.1, the prior month. The prices index rose to 69.8, up from 69.4 the prior month and signaling quickening expansion. The inventories index fell by 2.6 points to 50.8, marking a second month of expansion after six months of contraction. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Indonesia's coal power phase-out hinges on funding


01/05/25
News
01/05/25

Indonesia's coal power phase-out hinges on funding

Manila, 1 May (Argus) — Indonesia's accelerated coal-fired power phase-out plan hinges on private-sector and international partners financial support, the country's energy ministry said, after issuing further guidance last month. Indonesian energy ministry ESDM published a ministerial regulation in early April outlining the criteria and processes for the early retirement of coal-fired power plants. But the plan will not be carried out if there is no clarity over funding for its energy transition efforts, in which case Jakarta will continue to prioritise domestic energy production, including through fossil-based sources, ESDM said this week. The Indonesian government will not use its state budget or funds from state-owned utility PLN to fund the early retirement of coal-fired plants, ESDM said. The new regulation details the evaluation processes for retiring coal-fired plants early, and emphasises the need for financial support from private-sector or international partners to achieve an accelerated phase out. Policy makers will evaluate the impact of a plant's retirement on the country's electricity grid, power supply and electricity tariffs, among other factors, when considering its phase out, ESDM said. It will also take into account aspects of the Just Energy Transition Partnership (JETP) climate financing pact signed with rich nations in 2022, such as the livelihood of employees affected by the phase-out, as well as a plant's capacity, age, utilisation, greenhouse gas emissions and economic value. The availability of foreign and domestic technological support will also be considered; according to ESDM. US president Donald Trump's decision to withdraw the US from the JETP raised concerns earlier this year on whether Indonesia could stick to its energy transition policies, but the country recently secured $60mn in JETP funding to develop a solar project . State-owned utility PLN will be tasked with studying the technical, legal, commercial and financial aspects of decommissioning plants that are put forward for early retirement, including funding sources. It will have to submit a report to the ministry no later than six months from the date a plant is identified for decommissioning, ESDM said. The share of renewables in Indonesia's power mix is expected to rise to around 21pc by 2030 and 41pc by 2040, according to think-tank Ember. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil's energy transition spending drops in 2024


30/04/25
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30/04/25

Brazil's energy transition spending drops in 2024

Sao Paulo, 30 April (Argus) — Brazil's mines and energy ministry's (MME) energy transition spending shrank by 83pc in 2024 from the prior year, while resources for fossil fuel incentives remained unchanged, according to the institute of socioeconomic studies Inesc. The MME's energy transition budget was R141,413 ($24,980) in 2024, down from R835,237 in the year prior. MME had only two energy transition-oriented projects under its umbrella last year: biofuels industry studies and renewable power incentives, which represented a combined 0.002pc of its total R7bn budget. Still, despite available resources, MME did not approve any projects for renewable power incentives. It also only used 50pc of its budget for biofuel studies, Inesc said. Even as supply from non-conventional power sources advances , most spending in Brazil's grid revamp — including enhancements to better integrate solar and wind generation — comes from charges paid by consumers through power tariffs, Inesc said. Diverging energy spending Brazil's federal government also cut its energy transition budget for 2025 by 17pc from last year and created a new energy transition program that also pushes for increased fossil fuel usage. The country's energy transition budget for 2025 is R3.64bn, down from R4.44bn in 2024. The new program — also under MME's umbrella — has a budget of around R10mn, with more than half of it destined to studies related to the oil and natural gas industry, Inesc said. A second MME program — which invests in studies in the oil, natural gas, products and biofuels sectors — has an approved budget of R53.1mn. The science and technology ministry is the only in Brazil that increased its energy transition spending for 2025, with R3.03bn approved, a near threefold hike from R800mn in 2024. Spending will focus on the domestic industry sector's energy transition, Inesc said. Climate activists have criticized Brazil for not planning to phase out fossil fuels before, including criticisms to the first letter written by the UN Cop 30 summit's president. The country will hold the summit in November in northern Para state. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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