The reign of king coal in China might be nearing its end. A recent report by BIMCO, a leading shipping association, suggests that China’s dependence on coal for electricity generation might be reaching its peak.
This shift is driven by a significant rise in renewable energy sources. Between January and April 2024, China’s electricity generation from renewables surged by 12% year-on-year, significantly outpacing the modest 6% growth seen in fossil fuel generation. This trend is even more pronounced when considering that hydropower generation has stagnated due to low rainfall in the past two years.
The impact on coal imports is already being felt. Despite a rise in steam coal shipments to China in the first four months of 2024 (29% year-on-year), there are signs of a slowdown. Coal shipments actually fell by 7% in March and April compared to the same period in 2023, coinciding with a meager 1% increase in electricity generation from fossil fuels. This suggests a potential turning point in China’s reliance on coal, with renewable energy playing an increasingly prominent role.
Source: India Shipping News