China curtails 360TWh of clean power in H1

Coal generation climbed 3.4% despite lower plant utilisation.

China curtailed an estimated 360 terawatt-hours of wind and solar power in the first half (H1) of 2026, up 49% year on year (YoY), with the wasted electricity exceeding the increase in power demand during the period.

A joint study from the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) said that the figures point to growing power oversupply as China expands coal capacity, whilst limits remain on clean energy grid integration.

China commissioned 30 gigawatts (GW) of new coal power capacity in H1 2026, up 43% from the same period last year, and retiring 2.7 GW.

Coal power generation rose 3.4% YoY despite lower utilisation of coal plants. The country also started construction on 25.4 GW of new coal capacity, leaving 274 GW in the project pipeline, equivalent to 22% of its operating coal fleet.

Had the curtailed wind and solar electricity been absorbed, the additional supply could have met all growth in power demand and allowed coal generation to fall, CREA and GEM said.

China's combined domestic coal production and imports fell 1.4% YoY in H1, indicating that the increase in coal generation did not reflect a broad response to liquefied natural gas shipping disruptions in the Strait of Hormuz.

The central government called for tighter control of coal power capacity and generation in April 2026, but developers proposed 70 GW of new coal projects and revived another 20 GW in H1, a 25% YoY increase.

Simultaneously, only 8.6 GW received permits, indicating tighter scrutiny of new projects, the joint study said.

China added 10 times more coal capacity than it retired in H1, as the legacy of the 2022-2023 approval boom continued to feed new projects into the power system.

Coal generators are still expected to sign annual contracts covering 60% to 70% of the previous year's delivered electricity, despite lower minimum contract requirements than those applied from 2023-2025.

CREA and GEM said these requirements could limit the space available for clean power as demand growth slows.

“China’s coal buildout is a warning about overcapacity, not a blueprint for energy security,” said Qi Qin, China Analyst at CREA. “Coal capacity is still growing because of legacy approvals and policy protections, even as plants run fewer hours and large volumes of clean electricity go unused.”

Christine Shearer, Research Analyst at GEM, said the power sector was receiving mixed policy signals, with tighter controls on coal capacity alongside continued additions supported by market mechanisms.

“Until these incentives are aligned, coal's transition from baseload generation to a flexible backup role will remain challenging,” Shearer said.

CREA and GEM recommended setting peak years for power-sector emissions and coal consumption, ending net growth in coal capacity during the 15th Five-Year Plan period, and phasing out coal-specific minimum requirements for medium- and long-term contracts.

They also called for reliability payments to be separated from coal energy sales, with capacity payments made technology-neutral, and for “retire-and-rebuild” coal power schemes to end.