A surge in China’s hydropower generation this year, fueled by record rainfall, is helping the world’s biggest environmental polluter meet sustainable development goals and cut imports of liquefied natural gas (LNG) amid tight global supplies, Reuters reported.
Global coal and LNG prices hit record highs this year, fueling inflation as Western sanctions on Russia cut off supplies to one of the world’s biggest energy exporters. But slowing demand from China, one of the world’s top coal and LNG importers, is holding prices back.
“The situation in China this year is unique, mainly because COVID-19 restrictions have limited demand for electricity, and fast-growing renewable energy sources (RES) can meet the slow growth in demand,” said China Greenpeace senior global policy adviser Li Shuo.
Heavy rainfall and rapidly growing new renewable capacity have reduced the need for fossil fuels. Between March and May this year, southern China received the most rainfall in 60 years, resulting in an 18% increase in hydroelectric power generation in the first five months of the year compared to a year earlier.
Meanwhile, thermal energy production, mainly from coal-fired power plants, fell 4% between January and May. Presently, China uses coal to generate about 60% of its electricity, up from more than 75% in 2010, 3-5% comes from gas and the rest from renewables.
This year’s flood season in southern China started two weeks earlier than usual, with average rainfall hitting levels not seen since 1961. Heavy rains allow reservoirs to store more water for hydro generation in the coming months.
Solar energy is growing faster. In the first five months of this year, solar energy generation increased by 13% compared to last year, accounting for 2.7% of total electricity generation. China added about 23 GW of new hydropower capacity in 2021, bringing hydro capacity to 16% of the total energy balance.
An abundance of hydroelectric power is also holding back China’s demand for expensive LNG, helping to cap global prices, which hit a record high in March. Imports fell 20% in the first five months compared to last year.
“It is difficult to say whether this trend will continue, as there is still uncertainty about how quickly electricity demand will recover and whether RES will be able to meet the growing demand fully. But more and more renewable energy is entering China’s power grid,” said Li Shuo.