China generates less than half of its electricity from coal for the first time

China has reached a significant milestone in its energy transition. For the first time, the country generated less than 50 percent of its electricity from coal during the first half of this year. Officials reported that coal accounted for 49.7 percent of the power mix through June.

Renewable energy sources now claim a larger share of the country's electricity production, climbing to 41.2 percent. Wind and solar power are major contributors to this shift, representing 24.6 percent of the total output. Nuclear power and natural gas make up the remainder of the supply.

While this decline in coal dependency is a notable shift for the world's largest coal consumer, industry analysts observe that total coal consumption may still rise this year. Increasing power demand driven by the growth of electric vehicle ownership, new data centers for artificial intelligence, and manufacturing exports keeps pressure on the national grid.

Energy planners aim to reach peak coal consumption no later than 2030, with specific targets to increase wind and solar to 30 percent of the total power mix by that same year. Some experts suggest that expanded rooftop solar and battery storage deployment could accelerate these timelines, potentially reaching current 2030 goals as early as 2028.

Despite the progress in green energy, China remains more reliant on coal than many other large economies due to significant domestic coal reserves and limited natural gas supplies. However, this shift represents a calculated move toward a more varied energy portfolio as the nation works to balance industrial output with climate targets.