China's total electricity consumption rose 2.5% year-on-year in the first quarter of 2025, signaling continued growth in energy demand despite broader economic uncertainties, the National Energy Administration (NEA) said at a press briefing on April 28.
Source: China Electric Power News
China's total electricity consumption rose 2.5% year-on-year in the first quarter of 2025, signaling continued growth in energy demand despite broader economic uncertainties, the National Energy Administration (NEA) said at a press briefing on April 28.
Xing Yiteng, Deputy Director-General of the NEA’s Department of Development and Planning, outlined four key trends shaping China’s energy landscape in the first three months of the year: steady production growth, a rapid shift toward cleaner energy, resilient consumption, and stable-to-lower prices.
Energy production picks up, especially in March
Energy production remained strong in Q1, with coal, oil, gas, and electricity output all recording gains. Industrial enterprises produced 1.2 billion tonnes of raw coal during the quarter, up 8.1% from a year earlier. Output accelerated in March, rising 9.6% year-on-year, with daily production averaging more than 14 million tonnes.
Crude oil output rose 1.1% year-on-year to 54.09 million tonnes, while natural gas production climbed 4.3% to 66 billion cubic meters. Both showed faster growth in March, with oil up 3.5% and gas up 5.0% from the same month last year.
China’s total installed power generation capacity reached 3.43 billion kilowatts by the end of March, up 14.6% year-on-year. Electricity output from large-scale industrial producers also rebounded in March, with the growth rate rising 3.1 percentage points compared to January–February.
Clean energy capacity surges, reshaping energy mix
China is accelerating its transition to non-fossil energy sources. By end-March, installed wind and solar capacity had jumped 17.2% and 43.4% year-on-year, respectively. For the first time, their combined capacity surpassed that of coal-fired power.
Hydropower and nuclear capacity reached 438 million and 61 million kilowatts, growing 3.3% and 6.9% from a year earlier. Overall, non-fossil fuels accounted for a 4.3 percentage point larger share of total installed capacity compared to Q1 2024.
Preliminary estimates suggest that non-fossil energy sources accounted for 1.5 percentage points more of total energy consumption than in the same period last year.
Demand remains resilient, electricity use rebounds
China’s energy consumption continued to rise, with a notable acceleration in electricity use in March. Total power consumption reached 2.38 trillion kilowatt-hours in Q1, up 2.5% year-on-year. March alone saw a 4.8% increase from a year earlier.
Natural gas consumption remained on an upward track, especially in power generation. However, coal demand softened due to a mild winter and rising renewable generation. Gasoline and diesel use continued to decline, while kerosene consumption edged up modestly.
Energy prices ease, investment stays strong
Prices across the energy sector remained broadly stable, with a downward trend in key areas. Spot prices for thermal coal continued to fall, and long-term contract prices also declined, albeit more gradually. As of March 31, the spot price for 5,500 kcal thermal coal at Bohai Rim ports was RMB 676 per tonne, down RMB 165 year-on-year.
Brent crude oil futures averaged $74.70 per barrel in Q1, $7 lower than a year ago.
Energy sector investment continued to grow at a healthy pace. In January and February, investment in key national energy projects rose 12.9% year-on-year, led by strong momentum in offshore wind, new energy storage, grid infrastructure, and nuclear power.
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