China sets high target for coal power capacity cuts

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Report summary

China is pushing harder than ever before to cut excess coal power capacity, to prevent the imminent risks from overcapacity reaching a critical point. A series of measures have been announced to tighten up enforcement and support – with outdated coal-fired power plants ordered to close and new projects put on hold or even cancelled. The latest government-issued list targets 106 GW to be cancelled or deferred and 5 GW to be decommissioned. With a similar list issued in January, the total suspended capacity could reach 190 GW. Coal-rich provinces such as Shanxi and Inner Mongolia will bear the brunt. In this campaign, environmental policies are playing a bigger role in determining the scale of capacity rationalisation. Nevertheless, how to manage the financial fallout as a result of the mass suspensions could prove a key challenge to the supply-side reform’s agenda.

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    China sets high target for coal power capacity cuts

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Tables and charts

This report includes 4 images and tables including:


  • Evolution of China’s coal power capacity cut policies since 2016
  • Total announced capacity cut and deferral since 2016
  • China will cap its 2020 coal-fired power capacity below 1,100 GW
  • China sets high target for coal power capacity cuts: Image 4

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