KEY POINTS
- China’s coal output rose 2.8 percent in August 2024 due to higher energy and chemical industry demand.
- Thermal power generation increased by 3.7 percent year-on-year, highlighting continued reliance on coal.
- Despite overall growth, coal output from January to August fell slightly by 0.3 percent due to earlier safety inspections
China’s coal production in August 2024 rose by 2.8 percent, driven by a surge in power generation and increased demand from the chemical sector. According to data from the National Bureau of Statistics, the country mined 396.55 million metric tons of coal last month, a significant increase from the 390.37 million tons recorded in July.
August’s rise in coal output follows a series of extreme heat waves in July, which set new temperature records. The high temperatures continued into August, pushing up the demand for electricity as homes and businesses relied on air conditioning to cope with the heat.
The surge in energy consumption, alongside reduced hydropower output, contributed to higher thermal power generation, which rose by 3.7 percent year-on-year to 614.9 billion kilowatt-hours (kWh). This increase highlights the growing reliance on coal, China’s primary energy source, for meeting the nation’s electricity needs.
Power sector and coal-to-chemicals demand boost output
The power sector wasn’t the only driver of increased coal production. China’s coal-to-chemicals industry also experienced robust growth in August, further bolstering demand for coal. Industry analysts report that this sector has become a key contributor to the sustained demand for coal, alongside electricity generation.
As reported by Reuters, despite the August rise, safety inspections earlier in the year had limited coal production, resulting in a slight 0.3 percent decline in output from January to August, compared to the same period in 2023.
Even with this dip, the latest data indicates that the coal industry remains a critical part of China’s energy landscape.
Outlook for china’s energy future
The uptick in coal production underscores China’s ongoing dependence on coal, even as the nation makes efforts to diversify its energy sources. Hydropower output, while still growing, only saw a 10.7 percent increase in August, compared to a more robust 36.2 percent growth in July.
With thermal power generation continuing to play a crucial role in meeting energy demand, it is clear that coal remains a cornerstone of China’s energy strategy.
As the world’s largest coal producer, China’s ability to balance its energy needs with environmental concerns will remain under scrutiny. While the country has made significant strides in renewable energy development, coal continues to dominate its energy mix, reflecting both economic demands and the challenges of transitioning to cleaner alternatives.
