China and India, two of the world's major economies, are facing a significant challenge in their energy sectors. Despite their efforts to expand renewable energy generation, the rapid growth in energy demand and the need to raise living standards have resulted in record-high consumption of fossil fuels.
Both countries are eager to pursue a "best of both worlds" approach to economic development and energy security.
In China, electrical generation reached a seasonal record in September 2023, driven by economic recovery and increased consumption across sectors. Total generation over the month increased by almost 63 TWh or 9% from a year earlier, according to the National Bureau of Statistics (NBS).
While renewable generation has seen a substantial growth, it is not keeping pace with the rising demand, leading to a continued reliance on coal, Reuters said.
China has made significant investments in renewable energy, with a major focus on solar power. However, coal-fired power plants have continued to generate more hours on average than renewable sources, indicating the critical role coal plays in ensuring reliable and abundant power supply.
The country has added 226 GW of extra generating capacity in 2023, with solar at 129 GW, thermal 39 GW, wind 33 GW) and hydro 8 GW.
But thermal plants have generated 3,344 hours on average against 2,367 hours of hydro, 1,665 hours of wind turbines and 1,017 hours of solar farms, the NBS data showed.
China's hydropower generation has been affected by prolonged droughts, necessitating increased thermal output to bridge the gap. To prevent coal shortages, the government has mandated maximum domestic coal production and a notable increase in imports.
While China is making progress in renewable energy expansion, it continues to face challenges in reducing its reliance on fossil fuels.
Similarly, India is experiencing a steep rise in energy use as it strives to improve living standards. The country has been investing in renewable energy to reduce greenhouse gas emissions and dependence on imported oil and gas.
However, the current trajectory shows that fossil fuels remain the dominant source. Coal, in particular, plays a significant role in India's energy mix, even as the country increases its capacity for solar and wind power generation.
Both China and India are following a historical pattern observed during the transition from pre-modern agricultural economies to modern urban and industrial ones, which is accompanied by a substantial increase in energy consumption, driven by the desire for labor-saving, higher wages, comfort, entertainment, and travel opportunities, Reuters reported.
As their populations aspire to reach the living standards of North America and Europe, the demand for energy services is expected to grow significantly.
While policymakers from OECD countries urge China and India to accelerate their transition to zero-emission alternatives, the current reality necessitates a balanced approach.
The governments of both countries have prioritized increasing access to affordable and reliable energy services such as renewable energy sources, including wind, solar, and hydro, to support economic development.
Nevertheless, the transition to a more sustainable energy mix will take time as China's and India's energy consumption continues to grow. The governments need to consider the unique challenges and work towards a gradual reduction in fossil fuel dependence while ensuring energy security and economic growth.
(Writing by Riley Liang Editing by Emma Yang)
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