Where to Begin

Flicking a light switch, turning on an air conditioner, or charging a phone leaves most people rarely wondering about the source of the electricity powering these daily habits. For a long time, the answer was straightforward: it came from coal-fired power plants.

As the primary driver of China's rapid industrialization, coal power has supported countless homes and ensured the basic functioning of the economy and society. However, as the energy transition deepens, decades of this power structure are undergoing a historic shift.

In the first half of the year, China's coal-fired power generation reached 2.5 trillion kilowatt-hours, accounting for 49.7% of total electricity generation. This is the first time coal's share has fallen below 50%. During the same period, renewable energy generation approached 2 trillion kilowatt-hours, making up 41.2% of total generation, which is also a first-time milestone exceeding 40%. The long-standing dominance of coal in the electricity supply landscape is being profoundly reshaped.

Why This One-Two Punch Matters

These two core data points—one declining and one rising—are not just numerical changes. They reflect the genuine upgrading of China's energy structure. The drop in coal's share below 50% is a phased achievement of the nation's steady energy transition, laying a solid foundation for a new power system. Meanwhile, the renewable share exceeding 40% for the first time means it can cover over 40% of the country's electricity demand. This signals that new energy sources are gradually moving away from their status as a "supplementary energy" and stepping into the spotlight, marking a substantive breakthrough in the green and low-carbon transition.

This historic energy shift is not accidental. It stems from China's long-term strategic focus, continuous breakthroughs in core technologies, and increasingly comprehensive system support.

Strategic Foundation as the Cornerstone

Strategic foresight has been the foundation of this transformation. Over the past decade, from the "Four Revolutions and One Cooperation" energy security strategy setting the direction, to the "dual carbon" goals defining the low-carbon path, to the detailed implementation of the "15th Five-Year Plan" for renewable energy, China has consistently followed a unified blueprint. Sustained top-level design, consistent policy implementation, and steady project rollouts have enabled the large-scale expansion of new energy sources, the orderly transition of coal power, and ultimately, a fundamental change in the energy mix.

Technological Innovation as the Core

Technological innovation is at the heart of the transition. Over the past decade, the cost of wind and solar power generation in China has dropped significantly, by over 60% and 80% respectively. The cost of solar power has already fallen below the benchmark price of coal power in many regions, achieving a complete reversal in the economics of clean energy. Leveraging the advantages of a full industrial chain, China's green industries—including wind, solar, and energy storage—now account for over 70% of the global share. This strong technical capability and industrial scale provide the core driving force for the widespread adoption of new energy.

System Support as the Guarantee

System support acts as the guarantee for the transition. To address the intermittency and volatility of wind and solar power, China has built the world's largest AC/DC hybrid power grid, enhancing the intelligence of main and distribution networks to enable efficient cross-regional dispatch of clean energy. Additionally, the country's new energy storage capacity has reached 153 million kilowatts, and a unified national electricity market system is beginning to take shape. The combined efforts of the grid, storage, and market effectively offset the fluctuations in new energy generation, ensuring stable grid integration and reliable power supply.

Clearing Up Misunderstandings

It is essential to clear up a common misconception: the decline of coal's share below 50% does not mean coal power is exiting the stage or being marginalized. In the new power system, the functional role of coal power is being precisely refined, shifting from a traditional base-load power source to a flexible and controllable support and regulation source. In recent years, the industry has often said, "Coal, with less than 50% of installed capacity, contributes 60% of power generation, 70% of peak shaving capacity, and 80% of system regulation tasks." During extreme weather events with no wind or sun, or when new energy output suddenly drops, coal power remains the "anchor" for electricity supply security. Its core value in providing safety and flexible regulation will be difficult to replace for a considerable period.

A Mutually Reinforcing Cycle

The energy transition and industrial upgrading are always mutually reinforcing. The large-scale development of clean energy can not only reshape the power generation structure but also drive the comprehensive upgrade of the entire energy consumption and industrial system. In the first half of the year, the domestic new energy vehicle industry continued to grow, with electricity consumption for charging and battery swapping services surging year-on-year. The expansion of green power supply has provided ample momentum for the development of the new energy industry and green manufacturing. At the same time, China's complete industrial chain for photovoltaics, wind power, and power batteries not only supports the steady progress of the domestic energy revolution but also exports green technologies, equipment, and solutions globally, becoming a core driver of the global energy low-carbon transition.

Looking Ahead to a New Beginning

The coal share falling below 50% is a vivid demonstration of China, as a large-scale economy, balancing energy security and green development. It strongly proves that economic growth and ecological protection, as well as energy supply security and low-carbon transition, are not a zero-sum game but can be advanced together for mutual benefit. According to the "15th Five-Year Plan," China's renewable energy has entered a new phase of "expanding scale and improving quality, with reliable substitution." The coal share dropping below 50% is an important milestone in the energy transition, but more importantly, it is a new starting point. Ahead, challenges remain, such as system regulation and supply-demand matching brought by the high proportion of new energy integration. Standing at this new juncture, China's green and low-carbon energy transition will continue to press forward, aiming for even higher goals.