Coal plummets and power storage rises

Will coal continue to play a key role in ensuring domestic energy supply?

Coal will continue to play a key role in ensuring domestic energy supply as the Chinese economy seeks to stabilize and recover, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Why is repositioning coal power important?

In terms of power generation and storage technology investments, repositioning coal power in the short- to medium-term transition periods significantly supports the growth of renewable energy, leading to an increase in capacity investment.

Why is coal production increasing?

Industry experts believe the expected increase in coal production is in line with the government's emphasis on ensuring energy security, particularly amid rising concerns over supply disruptions and growing demand.

Can repositioning coal power accelerate the net-zero transition?

A study on China finds that repositioning coal power from a baseload resource to a flexibility provider can accelerate the net-zero transition by mitigating stranded assets, enabling greater integration of renewables, and reducing transition costs.

What are the environmental impacts of a shift from coal to renewables?

Environmental impacts are at the heart of the shift from coal to renewables. Burning coal releases significant amounts of greenhouse gases, contributing to global warming. In contrast, wind and solar energy produce electricity with minimal carbon emissions during operation.

How can a coal supply agreement improve power supply?

Lower the mandated share of coal resources allocated to long-term supply agreements and the minimum contract coverage for power generators, limiting the ability of coal mining companies to lock in demand from power plants and ensuring a more market-driven approach to coal procurement.