China curtailed 360 terawatt-hours (TWh) of solar and wind power from January to June 2026. This marks a 49% increase from the same period last year. The report from the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) states that this wasted electricity could have powered the United Kingdom for over a year. The curtailment happened due to grid constraints and increased coal-fired power generation, which limited the use of renewable energy.
Key Details
Coal generation has risen, reversing a decade-long decline. Coal output increased by 3.4% year-on-year. In the first half of 2026, China added 30 gigawatts (GW) of new coal-fired capacity. This is the highest addition for any first half in a decade. During this time, only 2.7 GW was retired. Another 25.4 GW began construction, with 274 GW in the pipeline. This represents 22% of the existing coal fleet. The expansion has led to a power system with more generating capacity than it can effectively use.
Background
Sharon Feng, a senior analyst at Wood Mackenzie, noted that high levels of curtailment pose risks to income stability and power price fluctuations. She emphasized that developers need to assess provincial grid conditions and long-term price forecasts when making investment decisions. The report indicated that average curtailment rates for wind and solar could exceed 5% in several provinces over the next decade.
The curtailment of renewable energy is likely to impact the coal market. Increased coal generation contradicts efforts to transition to cleaner energy sources. This situation may lead to higher coal prices as demand for coal remains steady, despite cheaper renewable options. Investors will monitor any changes in China's energy policy or grid infrastructure improvements that could help reduce these curtailment issues.
Based on reporting by: oilprice.com, independent.co.uk