Analysis finds that China's coal plant permits will be at a four-year low by 2025.

A new Greenpeace report showed that China's coal plant permits will fall to their lowest level in four years. This is due to the growing demand for renewable energy sources.

Greenpeace has found that China allowed 41.8 gigawatts to be added to coal plant capacity during the first quarter of 2025. If the current pace is maintained, the 2025 permits will be the lowest since 2021.

Greenpeace estimates that the approvals for 2025 will represent between 171.5 billion and 181.5 billion dollars in new coal investments. 85% of these investments are owned by state-owned companies.

China's National Development and Reform Commission and National Energy Administration have not responded to comments immediately.

Gao Yuhe, Greenpeace East Asia’s climate and energy manager said: "China's additional demand for electricity can now be met fully by wind and solar energy."

The expectations for coal power production and profitability has also decreased, leading to the drop in approval volume.

China's coal plant permits increased from 2022-2023 after a period of coal and electricity shortages frightened regulators.

After the crisis subsided, permits began to decline. The growing renewables fleet covered more of the additional demand and shortages became oversupplies.

Despite the surge in permits, the total number of permits issued for the five-year plan 2020-2025 is already double the amount for the previous five years.

Gao believes that there may be a time factor involved, given the fact that 2025 marks the end of the current 5-year plan. Many projects had already been approved earlier during the period.

Gao stated that if China continues to advance the construction of its "new power system" - which it uses to refer to the increasing use renewables and coal playing a more supporting role – then the permitting rates could drop even further in the next five years compared to the year 2025.

China has not set new coal targets in its new climate goals released in September. ($1 = 7.0954 Chinese yuan renminbi)

(source: Reuters)