China’s Coal Power Generation Dips Below 50% for the First Time as Renewables Gain Momentum

Beijing, China – In a significant milestone for China’s energy transition, coal-fired power plants generated 49.7% of the nation’s total electricity output during the first six months of 2026. This marks the first time in recorded history that coal’s share has fallen below the 50% threshold, signaling a pivotal shift away from the country’s long-standing reliance on fossil fuels for power generation.

The development, highlighted by data compiled by environmental organizations, underscores the accelerating pace of renewable energy deployment across China, a global leader in both coal consumption and renewable energy investment. While coal remains a dominant force, its diminishing proportion in the energy mix is a clear indicator of the success of policies aimed at decarbonizing the power sector and combating climate change.

A Turning Point in China’s Energy Landscape

The decline in coal’s share is not an isolated event but rather the culmination of years of strategic planning and substantial investment in cleaner energy sources. China has set ambitious targets for renewable energy growth, driven by a dual imperative: to meet its rapidly expanding energy demands and to fulfill its international commitments to reduce greenhouse gas emissions.

According to the International Energy Agency (IEA), China has consistently led the world in renewable energy capacity additions for over a decade. By the end of 2025, the nation had already surpassed its initial targets for solar and wind power installation, prompting revisions for future growth. This aggressive expansion has directly contributed to the displacement of coal-fired power generation, as new renewable capacity comes online and meets a growing portion of the country’s electricity needs.

Greenpeace’s Perspective on the Shifting Balance

Gao Yuhe, Beijing-based project lead for Greenpeace East Asia, characterized the development as a crucial step in coal’s ongoing decline in China. "This is another step in coal’s decline in China, and there’s still a way to go," Gao stated. "Solar and wind play a central role in outcompeting and displacing coal."

However, Gao also pointed out that renewable energy sources, while growing rapidly, still have significant room for expansion. "Solar and wind generation is still only at 25%," she noted. "Stronger targets for solar and wind generation will have a knock-on effect to further undercut coal."

Greenpeace East Asia has been a vocal advocate for more ambitious renewable energy targets. The organization believes that China’s current 2030 target for wind and solar capacity of 30% is achievable and could even be surpassed, potentially reaching 33% by 2028. "Without stronger targets, coal will linger in the interim," Gao warned, emphasizing the need for policy to keep pace with technological advancements and market realities.

Key Growth Sectors to Watch

Gao highlighted specific areas within the renewable energy sector that are poised for significant growth and impact. "Rooftop solar and energy storage are the key sectors to watch over the next few years," she explained. "In high energy demand provinces on the eastern seaboard, rooftop solar and battery deployment offer local solutions to meet peak electricity demand."

This focus on distributed generation and energy storage is critical for enhancing grid stability and flexibility. As China’s economy continues to grow and its cities become more electrified, managing peak demand and ensuring a reliable power supply becomes increasingly challenging. Rooftop solar installations, often combined with battery storage systems, can provide localized power generation, reducing reliance on large, centralized power plants, including coal-fired ones, and alleviating strain on the national grid during periods of high consumption.

A Timeline of Transformation

The journey to this sub-50% milestone for coal power has been a gradual but accelerating process. Here’s a brief chronological overview of key developments:

• Early 2010s: China begins to seriously invest in large-scale renewable energy projects, particularly hydropower and wind, to address energy security and air pollution concerns. Coal remains the dominant source, but the groundwork for diversification is laid.
• Mid-2010s: The deployment of solar photovoltaic (PV) capacity accelerates dramatically, driven by government incentives and falling costs. China emerges as the world’s largest installer of solar power.
• Late 2010s: National policies increasingly emphasize the transition to a low-carbon economy. China ratifies the Paris Agreement and sets ambitious targets for peak carbon emissions. Coal’s growth rate in power generation begins to slow.
• Early 2020s: China announces its "dual carbon" goals: achieving carbon peaking before 2030 and carbon neutrality before 2060. This commitment galvanizes further investment in renewables and a more concerted effort to phase out coal.
• 2023-2026: Renewable energy capacity, particularly solar and wind, continues to expand at an unprecedented pace. The integration of these intermittent sources into the grid becomes more sophisticated, aided by advancements in energy storage and grid management technologies.
• First Half of 2026: For the first time, coal’s contribution to total electricity generation falls below 50%, reaching 49.7%. This signifies a fundamental shift in China’s energy landscape.

Supporting Data and Trends

The declining share of coal power is supported by a wealth of data indicating the robust growth of renewable energy. While specific figures for the first half of 2026 are still being consolidated by official bodies, trends from previous years provide a clear picture:

• Renewable Energy Capacity Growth: China has consistently added more renewable energy capacity than the rest of the world combined in recent years. By the end of 2025, total installed renewable energy capacity (including hydro, wind, solar, and biomass) was projected to exceed coal-fired power capacity.
• Solar Power Expansion: China’s solar PV capacity has seen exponential growth. In 2023 alone, the country added a record-breaking amount of solar capacity, exceeding the total capacity of some developed nations. This trend continued into 2024 and 2025, with significant contributions from both utility-scale projects and distributed rooftop installations.
• Wind Power Advancements: Both onshore and offshore wind power have also seen substantial development. China’s wind turbine manufacturing sector is a global leader, enabling rapid deployment and cost reductions.
• Energy Storage Integration: The deployment of battery energy storage systems (BESS) is crucial for managing the intermittency of solar and wind power. Investments in BESS have surged, with a particular focus on grid-scale projects and distributed solutions for industrial and commercial users.

Potential Reactions and Broader Implications

The news of coal power dipping below 50% is likely to be met with a mix of congratulations and continued calls for accelerated action from various stakeholders.

• International Climate Bodies: Organizations like the United Nations Framework Convention on Climate Change (UNFCCC) and the Intergovernmental Panel on Climate Change (IPCC) are expected to acknowledge this milestone as a positive indicator of China’s commitment to its climate goals. However, they will also likely emphasize the need for continued efforts to ensure that the remaining coal capacity is retired or repurposed efficiently and that new investments are firmly directed towards renewables.
• Environmental Advocacy Groups: As represented by Greenpeace, environmental organizations will likely view this as a significant victory but will continue to push for stronger policy frameworks, higher renewable energy targets, and a faster phase-out of coal power. They may also highlight the importance of ensuring a just transition for coal-dependent communities and workers.
• Energy Industry Stakeholders: Traditional energy companies with significant coal assets may face increasing pressure to diversify their portfolios and invest in cleaner energy technologies. Conversely, companies involved in renewable energy manufacturing, installation, and energy storage are likely to see continued robust growth opportunities.
• Economic Analysts: Economists will be closely monitoring the impact of this energy transition on China’s economic growth, energy security, and international competitiveness. The shift towards renewables can lead to lower energy costs in the long run, reduced reliance on imported fossil fuels, and the development of new green industries. However, the transition also presents challenges related to grid modernization, energy storage capacity, and the management of stranded assets.

The implications of China’s reduced reliance on coal-fired power are far-reaching. Globally, it contributes to the reduction of greenhouse gas emissions, a critical factor in mitigating climate change. Domestically, it has the potential to significantly improve air quality, leading to public health benefits. Furthermore, it positions China as a leader in the global clean energy revolution, driving innovation and setting a precedent for other nations striving to decarbonize their economies.

The Path Forward

While the 49.7% figure represents a landmark achievement, the journey towards a fully decarbonized power sector is ongoing. The continued growth of solar and wind power, coupled with advancements in energy storage and grid modernization, will be critical in further displacing coal. The emphasis on rooftop solar and localized energy solutions, as highlighted by Greenpeace, points to a future where energy generation is more distributed, resilient, and sustainable.

The coming years will be crucial in determining the pace of this transition. As China navigates the complexities of phasing out coal and scaling up renewables, its success will not only shape its own energy future but will also have a profound impact on the global fight against climate change. The data from the first half of 2026 serves as a powerful testament to the nation’s evolving energy paradigm and its growing commitment to a greener future.

ENDS

For media enquiries please contact:

August Rick, Greenpeace East Asia, Beijing, (email protected)

Greenpeace International Press Desk, (email protected), +31 20 718 2470 (24 hours)