China's thermal output is down in H1 even though June heat is driving an increase

Official data released on Tuesday showed that China's thermal power production from fossil fuels increased in June due to higher air conditioning demands, but declined in the first half. Renewables accounted for the majority of the increase in power output.

According to the National Bureau of Statistics, thermal power generation in June increased by 1.1%, to 493.9 billion Kilowatt-hours.

According to the China Coal Transportation and Distribution, data for June shows that average daily thermal coal consumption rose by 1.1% in 25 provinces of China.

As residents turned on air conditioners, the hot weather led to a higher consumption of coal. Huatai Securities analysts said that the average national temperature for June was tied with 2022 as the highest since 1961.

This pushed the electricity load to new heights.

Hydropower, China’s second largest power source, dropped 4% in August to 13,91 billion kWh, contributing to the increase in thermal output.

Huatai analysts say that the average flow of the Three Gorges Power Station, the largest in the world, fell by 12.5% in the month of June. They also predict that hydropower inflows will be low this year.

Thermal power generation, however, fell by 2.4% in the first half 2025 and hydropower by 2,9%. This shows that wind and solar accounted for the majority of demand growth.

The data revealed that the overall power generation in June increased by 1.7% to 796.3 billions kWh.

The National Bureau of Statistics tends to underestimate total generation, especially from renewables. This is because they only include companies with revenues of at least $20 million ($2.8 million) per year from their primary operations.

The National Energy Administration will release more detailed data later this month. (Reporting and editing by Colleen Waye)

(source: Reuters)