China's coal consumption is expected to increase moderately in 2025, and is slightly higher than the level in 2024, driven by growing power demand and stable industrial activity, showed data from the China National Coal Association (CNCA).

China's power generation from coal-fired power plants will increase 4.5% or 290 TWh in 2025, supported by expanded effective investments and policies aimed at stabilizing the real estate market, said Zhang Hong, deputy secretary-general of the CNCA.

Coal output is projected to rise, particularly in coal-rich regions like Shanxi, Shaanxi, Inner Mongolia and Xinjiang Uygur autonomous regions, with Xinjiang seeing a notable rise in production, the association announced.

The coal market is poised to largely maintain a balanced supply-demand dynamic, with periods of surplus to tightness due to seasonal fluctuations, the association predicted.

In 2024, China prioritizes stable coal production and supply, with more than half of its intelligent coal capacity contributing to the overall capacity. This follows the upgrading of 180 GW of coal-fired power units and elimination of 8 GW of outdated capacity, according to the National Energy Administration.

Over 95% of coal-fired power unit in China have achieved ultra-low emission standards. The growth rate of the country's coal-fired power generation declined from 9.7% at the beginning of the year to 0.5% by July. As a result, the annual coal consumption for coal-fired power generation will diminish 100 million tonnes year on year, according to National Bureau of Statistics.

The metallurgy and building material sectors, which together account for nearly a quarter of China's total coal consumption, have experienced a consecutive drop, contributing to the overall decrease in coal consumption.

In 2024, China's coal consumption is expected to increase to 4.85 billion tonnes, occupying 54% of the country's total energy consumption, according to China Petroleum and Chemical Corp.