New coal plants hit ‘10-year’ global high in 2025 – but power output still fell

The number of new coal-fired power plants commissioned globally in 2025 reached its highest level in a decade, driven primarily by developments in China and India. Despite this surge in new capacity, overall coal power generation declined, marking a significant shift in the global energy landscape. This paradox highlights the complex dynamics between coal infrastructure expansion and actual coal-fired electricity output. China and India accounted for approximately 87% of the new coal power capacity added this year, underscoring their continued reliance on coal to meet growing energy demands. However, both countries also experienced a reduction in coal power output, a trend not seen in over half a century. This decline is attributed to increased investments in renewable energy sources, improved energy efficiency, and policy measures aimed at reducing carbon emissions. The International Energy Agency (IEA) notes that the drop in coal demand in China is substantial enough to offset pro-coal policies previously promoted by other nations. The broader context reflects a global energy transition where coal remains a significant but increasingly challenged component of power generation. While new plants are still being built, their utilization rates are falling as cleaner alternatives gain traction. This shift has implications for global carbon emissions and climate change mitigation efforts, suggesting that despite infrastructure growth, coal's role in the energy mix is diminishing in practice. The developments in 2025 signal a nuanced phase in the coal sector, where capacity expansion coexists with declining output. This trend may influence future energy policies and investment decisions, particularly in major coal-consuming countries. It also highlights the ongoing tension between economic growth, energy security, and environmental sustainability in the global push toward cleaner energy systems.