China far outpaces the rest of the world in terms of adding new clean energy capacity, but it is fueling all of that expansion with the dirtiest fossil fuels. As China’s clean energy production potential increases, the country’s carbon efficiency is regressing. The world desperately needs these new clean energies to meet global decarbonization goals, but it also risks China putting the brakes on rising energy demand, especially its still-growing coal production capacity. In need of. And that’s not happening.
According to statistics from the China Electricity Commission industry group, energy consumption in China increased by 6.7% compared to last year. China already consumes more energy per capita than the European Union. But unlike in wealthy Western countries, not all of that energy is directed toward improving the living standards of the population. While 38% of the US grid energy is delivered to homes, only about 15% of China’s energy is consumed in homes. Instead, we are moving toward creating things. There are many many things.
China’s economy is changing. China’s economic growth is nearing a saturation point, with decades of tremendous economic growth and domestic infrastructure expansion slowing significantly. And in response to dramatic changes in the nation’s demand patterns, Xi Jinping has focused on expanding manufacturing capacity.
As a result, there is growing concern in the international community that China is significantly overproducing and will soon suffer from overproduction of large quantities of products. “China is making too much and other countries are concerned,” said a recent Wall Street Journal headline. The biggest concern is that China is likely to push excess solar panels, electric vehicles, and other products onto global markets at deep discounts, resulting in illegal use of predatory pricing to flood the market. That means you will have to do it.
The pace of China’s renewable energy deployment is blistering, but it’s nowhere near matching the production rate of the country’s manufacturing industry and the resulting insatiable energy demand. “What we are witnessing is a race between renewable energy installations and electricity demand for the fate of the planet,” Bloomberg writes. Last year, the increase in electricity consumption in China alone was equal to the increase in electricity generated in Germany over the same period.
As a result, China has become heavily dependent on its already huge coal sector to meet demand. “Thermal power generation grew 6.1% year-on-year, faster than the economy as a whole,” Bloomberg said, “a clear sign that China’s carbon efficiency is retreating.” By 2023, China alone will account for 96% of new coal-fired power plant construction worldwide. Combined data from the Global Energy Monitor (GEM) shows that Beijing has added 191 gigawatts of coal-fired power over the past five years.
It’s ironic that coal is fueling the green energy boom, but as long as China’s clean energy expansion rate is this high, that trend will continue. This surge in emissions aimed at clean energy is expected to have a dirty impact on long-term decarbonization timelines. Solar panels manufactured this year using coal-fired power are expected to generate clean energy for years to come and offset far more carbon emissions than were generated during manufacturing. .
Once all of China’s new clean energy capacity comes online and the sector’s rapid expansion slows, energy demand is expected to decline accordingly, eliminating the need to include fossil fuels, particularly coal, in the energy mix. . However, as China’s economy continues to undergo major changes, it is difficult to predict how long or short these rapid changes will be.
Written by Haley Zaremba, Oilprice.com
Other top articles on Oilprice.com: