China Jan-June power consumption +5.3% y/y - Energy Administration

China’s power consumption rose by 5.3% year-over-year during the first half of 2026, according to the Energy Administration, reflecting sustained economic activity and industrial demand. This growth aligns with long-term trends of increasing electricity use driven by urbanization and industrial expansion. The administration noted that renewable energy sources are playing an increasingly prominent role in meeting this demand, with solar PV and onshore wind continuing to expand in capacity and efficiency.

Despite the rise in electricity consumption, coal remains a significant component of China’s energy mix, with one of every four tons of global coal use still directed toward electricity generation in the country. However, the government continues to prioritize emissions reductions and air quality improvements, promoting the use of natural gas and renewables in both industrial and residential sectors. The cost competitiveness of new onshore wind and solar PV has also made them more attractive than new gas-fired generation at current price levels.

To support the transition to a cleaner and more reliable power system, the administration emphasized the need for continued investment in electricity networks and a diversified generation mix that includes flexible technologies to accommodate the growing share of intermittent renewables.