China's coal production has surged this year as the government seeks to improve energy security by reducing dependence on imports and amassing inventories at power plants.
Raising domestic coal output is consistent with Beijing's broader effort to indigenise supplies of critical energy sources, raw materials and technology.
Thermal power generation, nearly all from coal, set a new record of 3,883 billion kilowatt-hours in the first eight months of the year. As a result, coal-fired generators’ share of total electricity production fell to 69% in the first eight months of 2022 from 72% in both 2021 and 2019. Some of the reduction is down to disruption caused by repeated lockdowns to control the coronavirus epidemic which has hit iron and steel production.
Low levels of hydro generation forced China to rely more heavily on coal-fired units and draw more heavily on coal supplies since the start of July. But without the big ramp up in mine output earlier this year and inventory building during spring and summer, energy supplies would be even more stretched.
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