China’s coal production reached an unprecedented high in 2025, totaling 4.83 billion tons, as reported by Bloomberg. This represented an annual increase of 1.2%, despite a notable decline in coal-fired power generation. The surge in output occurred even amid governmental efforts to address oversupply issues that had negatively impacted production earlier in the year.
Natural gas production also experienced significant growth, hitting record levels as part of a long-term upward trend spanning three decades. Crude oil production similarly saw an increase, contributing to the overall expansion of China’s energy sector. In a noteworthy development, the Shanxi province, a major coal-producing region, achieved a remarkable milestone in alternative energy generation. The province’s electricity output from renewable sources exceeded 100 billion kWh for the first time, culminating in a total of 118 billion kWh in 2025, according to Xinhua.
The growth in renewable energy sources represented a substantial 26% increase from the previous year, driven by a 53.1% rise in wind and solar capacity, equating to an additional 16.9 GW. With this new capacity, Shanxi now boasts over 78.8 GW in wind and solar generation, making up nearly 50% of its total generation capacity by the end of 2025.
Despite the increase in domestic coal production, China’s demand for coal weakened, leading to a 9.6% decline in coal imports last year, which fell to 490 million tons. A seasonal surge in December provided a temporary boost but underscored the ongoing importance of coal in China’s energy landscape. This trend persists even as the country solidifies its position as the world’s leading builder of wind and solar energy facilities.
Contrary to expectations, China continues to expand its coal-fired generation capacity. Data from the non-profit organization Global Energy Monitor indicates that China is on track to commission as many as 85 coal-fired power generating units in 2026, out of a total of 104 global projects scheduled for initiation. Of the anticipated 63 GW of coal-fired power generation expected to commence operations worldwide in 2026, a staggering 55 GW will be located in China.
The juxtaposition of increasing coal output alongside the growth of renewable energy sources highlights the complexities of China’s energy strategy. As the nation navigates its energy future, the reliance on coal remains a significant factor in maintaining energy security while transitioning towards more sustainable alternatives.
