China and India Lead Global Coal Power Expansion in 2025
The first half of 2025 saw China and India propose nearly 88% of new coal power capacity worldwide. China added 21 gigawatts (GW) of coal power in six months, the highest in almost a decade. India commissioned 5.1 GW of new coal plants and has 92 GW of proposals pending. Despite rapid renewable energy growth, both countries continue to rely heavily on coal for energy security. Meanwhile, Europe and Latin America are phasing out coal entirely. This contrasting trend marks the complex global energy transition.
China’s Coal Capacity Surge
China led global coal expansion by adding 21 GW of new capacity in six months, the largest increase since 2016. This surge is linked to the energy crisis of 2021-22, which pushed policymakers to prioritise coal to avoid power shortages. Despite the increase in coal plants, China’s carbon emissions fell by about 1% in early 2025 due to rapid growth in renewables like solar, wind, and hydropower. Many new coal plants serve as standby capacity, operating mainly during peak demand.
India’s Dual Energy Strategy
India’s renewable capacity surpassed 220 GW by March 2025, supporting its 2030 goal of 500 GW. However, coal still generates around 70% of India’s electricity. The country plans to add about 90 GW of coal capacity in the next seven years, a 60% increase over previous targets. In the first half of 2025, India commissioned 5.1 GW of new coal plants, up from 4.2 GW the previous year. Coal plant retirements remain slow, with just 0.8 GW shut down in 2025. Delays in pollution control enforcement extend the life of older plants. India’s energy path runs on two parallel tracks – rapid renewable growth alongside continued coal dependence.
Global Regional Contrasts
While Asia expands coal power, Europe and Latin America move towards coal phase-out. Ireland closed its last coal plant in June 2025. Many EU countries plan full coal exit by 2029-33. Latin America has nearly stopped new coal projects. This regional divide complicates efforts to meet the Paris Agreement goal of limiting global warming to 1.5°C. Halting new coal development globally is key but challenged by Asia’s coal expansion.
Energy Security and Climate Goals
China and India’s coal strategies reflect energy security and industrial growth needs rather than a simple desire to increase emissions. Coal safeguards China’s power supply and supports India’s baseload electricity. Both countries also expand renewables aggressively. This dual approach shows the non-linear nature of the energy transition in major developing economies. Their choices will shape global emissions and climate outcomes in the coming decade.
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