Summary of Key Points
Some Western countries and media, unable to keep up with China in the field of renewable energy, have hyped up the "Chinese coal power paradox" – claiming that China is a leader in renewable energy while still building coal-fired power plants – in an attempt to discredit China and delay their own energy transition. Giordano Scacchiotti, a professor at Imperial College London, has analyzed this notion through engineering, institutional, and geopolitical perspectives, concluding that it is unfounded. He points out that although China's installed capacity of coal-fired power has increased, its utilization rate has been declining, shifting coal power from a primary source to a "backup option." In reality, the West is using this as an excuse to avoid taking responsibility for their own transformation.
The True Motives Behind Western Hyping of the "Chinese Coal Power Paradox"
The main reason the West focuses on China's coal power is that they are falling behind in the renewable energy race. China is the global leader in the manufacturing and deployment of solar and wind power, having installed 300 gigawatts of solar capacity (equivalent to 300 large nuclear power plants) and 100 gigawatts of wind power in 2025 alone. Many Western countries, however, are making slow progress in their energy transition due to a lack of technology and industrial chains.
Therefore, they have found a "crack" in the argument: China is still building coal-fired power plants. They portray China as a hypocrite, claiming to pursue carbon neutrality while continuing to use coal. But behind this lies a strategic move: using China's coal power as a shield to avoid taking responsibility for their own transformation and to deflect domestic criticism for their lagging progress.
The Truth Behind China's Coal Power Situation: Increasing Capacity but Declining Generation
Many people are confused by the claim that China is building more coal-fired power plants. It's important to distinguish between two key concepts: installed capacity and electricity generation.
- Installed capacity: This refers to the maximum amount of electricity a power plant can generate (for example, a 1-gigawatt coal power plant can generate up to 1 million kilowatts).
- Electricity generation: This refers to the actual amount of electricity produced (for example, if a plant generates only 4,820 hours of electricity per year, its utilization rate is 4820/8,760 ≈ 55%).
In 2025, China's installed capacity of coal-fired power increased by 6%, but its electricity generation decreased by 1.2%-1.6%, and its utilization rate dropped from 60%-70% to 48.2%. This indicates that coal power is no longer the primary source of energy; it has become a "backup option" that is only activated when renewable sources (solar, wind) are insufficient.
To put it simply, imagine having a large refrigerator at home that you usually use on low or medium settings, only turning on the highest setting during extreme hot weather. Coal power serves a similar role, providing backup in times of extreme weather or fluctuations in renewable energy production to ensure the electricity grid does not fail.
Why China Is Still Building Coal-Fired Power Plants
Even though the utilization rate of coal power is declining, there are three practical reasons for continuing to build it:
1. Energy security: China relies heavily on imported natural gas (40%-50%), which passes through critical routes such as the Strait of Malacca and the Strait of Hormuz. Geopolitical conflicts could lead to supply disruptions and price spikes. China, however, has sufficient coal reserves (13% of global reserves, 50% of global production), so its energy supply is not at risk.
2. Institutional inertia: China's power market was once planned economy-based, requiring coal-fired plants to produce a certain amount of electricity annually under fixed contracts; otherwise, they would lose profits and fail to repay loans. Even though renewable energy generates more electricity, coal power still needs to operate according to these contracts.
3. Local economic concerns: Local governments want to ensure economic stability. Power outages (e.g., due to droughts in Sichuan in 2022) can cause significant losses, such as factory shutdowns and disruptions in supply chains. Building more coal-fired power plants provides a safety net in case of emergencies.
Three Common Western Claims and How They Can Be Debunked
When Western politicians use China's coal power as an excuse, they often rely on three tactics:
1. **The "Nirvana Fallacy" (the illusion of a perfect solution): "China emits so much; what good does building wind farms do?" → Building wind farms serves multiple purposes: using local resources, reducing reliance on international oil and gas prices, creating jobs, and enhancing grid resilience.
2. Changing the subject: "What about China?" → When discussing their own difficulties with transition, they argue, "China is still building coal power; why should we change first?" → China is transitioning faster than any other country (renewable energy will meet all new electricity demand by 2025), and its investment in renewables is due to their strategic value (leading technology and complete industrial chains). Their own transition efforts are unrelated to China's, so don't shift the focus.
3. Misleading statistics: "China built 100 new coal power plants this year!" → Yes, but these plants operate only 48% of the time, and their electricity generation is declining. Having backup units does not mean they are always in use; it's like having a spare tire that you don't change every day.
Conclusion: Each Country's Transition Path Is Unique
There is no one-size-fits-all solution for energy transition. European countries can rely on interconnected grids and natural gas to balance demand, but China must consider factors such as energy security, industrial chains, and local economics. China's approach of vigorously promoting renewable energy while retaining coal power as a backup reflects its national realities.
The West is using China's coal power as an excuse to avoid the costs associated with transformation (such as phasing out outdated industries and investing in new technologies). True energy transition requires action by each country, not shifting blame onto others.
(The entire analysis is written in plain language to make it understandable even for non-financial readers.)