Chinese paper cuts fail to stop surge in new coal-fired power plants, says Greenpeace
Policy to cut red tape allows local authorities to give green light to new projects without seeking approval from Beijing
A surge in constructing coal-fired power capacity since last year has not slowed down, despite the central government introducing new measures in April to curb the trend, according to Greenpeace.
The green group warned the surge would lead to a total of 400 gigawatts of overcapacity in the sector by 2020, double the current level.
Three policies released by the National Energy Administration (NEA) in April – to retire outdated power plants, to set up an early warning mechanism on overcapacity risks, and to delay approving and constructing new plants in provinces with excess capacity – have so far failed to stop the surge in approvals for new plants, Greenpeace’s research found.
The group’s calculations show these measures would see 110GW of coal-fired power projects suspended and up to 70GW retired by 2020, but changes to permitting system last year meant there were still another 295 units under construction, with a total capacity of 200GW.
But two months since the policies were introduced, construction has started on two new coal-fired power plants each week in 10 provinces, Greenpeace said.