China's Coal Power Share Drops Below 50% for First Time

For the first time on record, coal's share in China's total electricity generation has dropped below 50%, standing at 49.7% in the first half of 2026. This significant milestone is attributed to China's ongoing policy to increase the contribution of non-fossil fuel sources to its energy mix. In line with this policy, renewable energy generation saw a 9% increase year-over-year.

Despite the overall decline in coal's share, current conditions are leading to a surge in coal prices within China. Intense heatwaves are significantly boosting electricity demand across the country. Analysts anticipate further price increases as concerns about coal supply mount, particularly following recent mine shutdowns. The situation is compounded by reduced output from hydropower and wind energy sources, which are currently experiencing depressed generation levels.

In a separate development, Kazakhstan is actively pursuing Chinese investment for its coal sector expansion. The Central Asian nation is in discussions with Chinese investors regarding potential investments in coal chemistry projects. Kazakhstan has outlined plans to develop six coal-to-chemical projects, with a projected timeline between 2026 and 2031, indicating a strategic focus on leveraging its coal resources for chemical production.