China approves 15 gigawatts of new coal, iron-making capacity in first half of 2022

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China approves 15 gigawatts of new coal, iron-making capacity in first half of 2022

In the first half of the year, SHANGHAI China approved 15 gigawatts of new coal-fired power capacity and another 30 million tons of coal-based iron-making capacity, despite falling power and steel demand, new research showed on Wednesday.

According to the report from the Centre for Research on Energy and Clean Air CREA and Global Energy Monitor GEM, China approved about $26 - 33 billion in investment in the coal power and steel sectors in the first six months, which raises the risk of more stranded assets as it moves closer to meeting its carbon goals, but it poses a risk to China's long-term climate commitments, said Xinyi Shen, a CREA researcher.

China approved more coal projects after a wave of power shortages in large parts of the economy last year.

China needs to create a more flexible electricity system and boost storage to distribute power where it is needed, according to the CREA-GEM report.

The country has increased the annual production capacity at its coal mines by 490 million tons since last year.

China's total power generation capacity had reached 2,466 gigawatts GW by the end of August, an increase of 8 per cent on the same period last year.

The total solar capacity increased by 27 percent to 349.9 GW, with the increase being driven by new solar and wind power installations. According to official data, coal-fired power increased by around 1 per cent to 1,110 GW.

China has been talking up its achievements on climate and criticising other countries for backtracking ahead of a new round of global negotiations set to begin in November in Sharm El-Sheikh in Egypt.