China fronts renewables as energy consumption surges to new records
Ziggy Ojiegbe
China’s energy consumption continued to rise across the board in 2025, with strong growth recorded in power generation, coal output and petroleum, alongside a sharp expansion in renewable energy.
Reports reviewed by Oracle Intelligence show that China now consumes more electricity than the European Union, Russia, India and Japan combined. Total installed power capacity climbed to about 1,760 gigawatts, while renewables accounted for more than 60 percent of new generation capacity added during the year.
Data for December 2025 released by the National Bureau of Statistics (NBS) showed the first annual decline in fossil-fuel power generation since 2015. The shift signals China’s effort to meet immediate energy needs with conventional fuels while laying the groundwork for a longer-term transition to cleaner energy.
Coal-intensive thermal power generation fell in 2025 for the first time in a decade, as renewable output expanded to meet rising electricity demand in line with China’s goal of peaking carbon emissions by 2030.
According to the NBS, thermal power generation declined by 1 percent from 2024 levels to 6.29 trillion kilowatt-hours, despite a record surge in coal production, which reached 4.83 billion metric tons. The drop was sharper in December, when thermal generation fell 3.2 percent year-on-year.
“The record-level buildout of renewables over recent years has cumulatively reshaped the generation mix and squeezed coal out of the system, alongside milder power demand growth of 5 percent in 2025,” said Peng Chengyao, head of APAC power and renewables research at S&P Global Energy. Power demand had grown by 6.8 percent year-on-year in 2024, according to the China Electricity Council.
Even so, electricity consumption still climbed to a new record. The National Energy Administration (NEA) said total power use surpassed 10 trillion kilowatt-hours for the first time in 2025. That figure exceeds the combined electricity consumption of the European Union, Russia, India and Japan in 2024, driven largely by rapid growth in internet-related services and electric vehicle manufacturing.
The NEA’s figures provide a broader picture of electricity use than the NBS data, which excludes some smaller-scale wind and solar generation due to survey revenue thresholds. The NBS reported total power generation of 9.72 trillion kilowatt-hours in 2025, up 2.2 percent from the previous year.
Hydropower output grew steadily, rising 4.1 percent in December and 2.8 percent for the full year, while nuclear power generation increased 3.1 percent in December and 7.7 percent in 2025.
Meanwhile, renewed tariff threats from U.S. President Donald Trump against European nations opposing his push for Greenland have revived concerns about heightened market volatility.
Looking ahead, S&P Global forecasts that thermal power generation is unlikely to accelerate in 2026, as renewable capacity continues to expand and electricity demand growth stabilises at around 5 percent.
