China doesn’t need new coal capacity, but power generators don’t seem to have gotten the message, according to a new report from Greenpeace. The environmental organization said two decades of rapid growth in coal-fired power generation coupled with with an increase in clean energy generation has “precipitated an unprecedented coal power overcapacity bubble, as power generators have failed to scale back their investments in new coal plants in response.”
The report says that due to a new policy, which allows provincial governments to approve new projects, 210 new coal-fired power plant projects, with a total capacity of 165 gigawatts, were granted permits in 2015. “In addition to existing overcapacity, there is already 200GW (365 units) of coal-fired generating capacity under construction, after the permitting binge seen in 2015,” the report says.
In contrast, demand for coal-fired power generation is expected to decrease, due a boost in clean energy generation. “By 2020, China could have 1,200GW of coal-fired power plants in operation and under construction, resulting in overcapacity of at least 400GW. This represents wasted capital expenditure of approximately 1.4 trillion RMB (200 billion USD),” the report says.
