Global New Coal Plant Construction Hits 10-Year High

Surge in New Construction

The number of new coal-fired power plants constructed globally has reached a 10-year high in 2025. This increase in infrastructure development occurs alongside a counter-intuitive trend where actual power output from coal continues to fall.

Much of this construction activity is centered in China. According to a joint report by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM), China began building 94.5 gigawatts (GW) of new coal-power capacity in 2024. Additionally, the country resumed 3.3GW of previously suspended projects during the same period. Other reports confirm that China's power industry initiated construction on nearly 100 gigawatts of new capacity last year, marking the highest level in nearly a decade.

Regional Divergence in Coal Usage

While construction is rising in some regions, other parts of the world are actively phasing out coal capacity. The United Kingdom — where the world's first coal power plant was established in 1882 — joined the list of countries without coal power capacity in September 2024.

In the European Union, coal power generation fell by 15% in 2024. Total coal demand within the EU decreased by over 10%, or 21 Mtce, during that same timeframe.

Conversely, non-OECD countries currently supply 84% of global coal output. These regions are characterized by rapidly growing energy demand and limited alternative infrastructure. In the United States, which holds the world's largest coal reserves, production reached 10.6 exajoules in 2024, accounting for approximately 6% of total global production.

Impact on Clean Energy Goals

The resurgence of coal plant construction is viewed as a setback for environmental targets. A joint report by CREA and GEM states that the increase in new coal-fired plants in China is "undermining the country's clean-energy progress".

This tension exists as China has emerged as a global leader in renewables while remaining heavily dependent on coal-fired plants. The conflict between these two energy paths was highlighted during the unveiling of China's plans for the next five years.