China’s Hydropower Surge Expected to Impact Coal Demand, Says Industry Association

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's industry association has predicted a continued surge in generation, leading to a dampening effect on the demand for coal in power plants, as disclosed on Wednesday.

According to , an analyst at the China Coal Transportation and Distribution Association, hydropower output witnessed a significant uptick of 42.9% year on year in the latter part of April, with expectations for sustained double-digit growth. Feng attributed this increase to recent rainfall in drought-affected regions such as Yunnan province in southern China.

“Following the onset of the flood season, hydropower's impact on thermal power generation will increasingly manifest,” Feng stated during a market seminar. He further noted that the ongoing expansion of capacity will further diminish coal's share in power generation.

Feng also highlighted positive developments regarding water levels and reserves at the Three Gorges Dam, the world's largest hydropower plant located in central Hubei province. As of Tuesday, the dam recorded a 47.8% year-on-year increase in water levels and reserves.

China's flood season, typically observed in May and June, commenced early this year due to record-breaking rains in late April, particularly in southern regions of the country.

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