China Cancels 103 Coal Power Plants; Still Has Too Much Coal Capacity

The cuts mean that China is on target to meet its coal power generation limit for year 2020. But even with the cancellations, China will have surplus coal power resulting in underutilization of renewable power due to preference for coal by utilities.

2 minute read

January 20, 2017, 9:00 AM PST

By Irvin Dawid


Jiujiang power plant

humphery / Shutterstock

The massive cancellations follows the announcement last August that coal usage in the world's most populous and greenhouse-gas emitting nation peaked in 2014.

"The cancellations make it likelier that China will meet its goal of limiting its total coal-fired power generation capacity to 1,100 gigawatts by 2020," reports Michael Forsythe for The New York Times.

Too much coal power

That huge figure, three times the total coal-fired capacity in the United States, is far more than China needs. Its coal plants now run at about half of capacity, and new sources of power, like wind, solar and nuclear, are coming online at a fast clip.

The canceled projects, some under construction, would have contributed 120 gigawatts of power. "The new announcements are in addition to cancellations detailed last year," adds Forsythe. 

The 2020 target was set in November as part of a new five-year plan that limits coal to 55 percent of total electrical power generation.

"Overcapacity in coal power has pitted renewable energy and coal against each other in the grid and led to a substantial proportion of renewable power generation being wasted...," reported Lauri Myllyvirta for Energy Desk Greenpeace.

"Grid operators often favor power generated from coal plants over that made by wind and solar, and despite the cuts, China is still building far more capacity than it needs, " adds Forsythe. Furthermore, he casts doubt on whether some of the cancellations will actually be done.

Earlier, Forsythe reported on China investing "$360 billion on renewable energy by 2020," and contrasts that investment with the attitudes of President Trump and his environment and energy cabinet appointments, Scott Pruitt and Rick Perry, respectively, toward climate change. The result: "jobs that would have been created in the United States may instead go to Chinese workers."

Hat tip to David Underwood

Related in Planetizen:

Wednesday, January 18, 2017 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 16, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

People walking up and down stairs in New York City subway station.

In Both Crashes and Crime, Public Transportation is Far Safer than Driving

Contrary to popular assumptions, public transportation has far lower crash and crime rates than automobile travel. For safer communities, improve and encourage transit travel.

6 hours ago - Scientific American

White public transit bus with bike on front bike rack in Nashville, Tennessee.

Report: Zoning Reforms Should Complement Nashville’s Ambitious Transit Plan

Without reform, restrictive zoning codes will limit the impact of the city’s planned transit expansion and could exclude some of the residents who depend on transit the most.

7 hours ago - Bloomberg CityLab

An engineer controlling a quality of water ,aerated activated sludge tank at a waste water treatment plant.

Judge Orders Release of Frozen IRA, IIJA Funding

The decision is a victory for environmental groups who charged that freezing funds for critical infrastructure and disaster response programs caused “real and irreparable harm” to communities.

April 18 - Smart Cities Dive