China’s coal consumption is expected to reach a peak plateau during the 15th Five-Year Plan period (2026-30), marking a significant shift amid the country’s ongoing green energy transition, according to a recent report by the China Electric Power Planning and Engineering Institute.
During the current 14th Five-Year Plan period (2021-25), coal usage in China has continued to grow but at a much slower pace. In 2025, total coal consumption reached 4.76 billion metric tons, representing a minimal year-on-year increase of 0.1 percent. As a result, coal’s share of the nation’s primary energy consumption fell to 51.4 percent, down 1.8 percentage points from the previous year.
The anticipated plateau in coal use during the next five-year period is expected to coincide with several energy sector reforms, including the accelerated development of new energy systems, promotion of cleaner and more efficient coal utilization, upgrading of traditional industries, and the replacement of scattered coal—low-quality coal widely used in households for cooking and heating. These measures aim to reduce coal dependence while ensuring energy security.
Power generation, which accounts for approximately 63 percent of China’s coal consumption, saw a 1.9 percent decline in coal-fired electricity output in 2025, contributing to a 2 percent decrease in thermal coal demand. Meanwhile, industrial sectors such as steel and building materials, which collectively use about 21 percent of coal, also experienced reduced consumption. Crude steel production declined by 4.4 percent, and cement and flat glass output dropped by 6.9 percent and 3 percent, respectively.
In contrast, the coal chemical sector has demonstrated robust growth, with coal demand surging by more than 10 percent last year. This increase is attributed to high operating rates at new coal chemical facilities and strong production of major chemical products. Currently, this sector accounts for about 9 percent of total coal consumption in China.
Experts highlight a structural transformation in coal-fired power generation, shifting from a primary baseload energy source to a more flexible and supportive role within the grid. Liu Zhiqiang, deputy director of the China Electricity Council’s planning and development department, noted that despite a reduction in coal plant operating hours to accommodate renewable energy, coal-fired plants remain essential for grid stability. They provide critical services such as frequency support and rotational inertia.
Liu also emphasized that although renewable energy installed capacity has reached record levels, this does not necessarily translate into consistent power generation. Due to the intermittent nature of solar power and other renewables, coal continues to serve as a vital "ballast stone" to maintain reliable electricity supply in the near term.
Over the past five years, China’s coal consumption increased from 4.05 billion tons to 4.76 billion tons, underscoring coal’s persistent yet evolving role in the country’s energy landscape. While its share in the overall energy mix is gradually declining, coal remains a cornerstone of national energy security as China advances its clean energy goals.