According to the Chinese government's coal power system upgrading guidelines released on Monday, they plan to continue building coal power plants through 2027 in regions where peak power demand or a stable grid is needed. 

The guidelines state that new coal-fired power plants must emit 10-20% less carbon per unit of electricity generated compared to the 2024 fleet, and some existing plants will also require upgrades to meet these standards.

A report from the China Coal Association issued last week said China's coal usage would not peak until 2028, which is later than other forecasts said it could peak this year. Although China says new coal-fired power plants are a backup for renewable power generation, the new guidelines may still be a concern about whether China will follow the commitment to continuously reduce coal use during the 2026-2030 period. 

The association said that increased coal use in the power and chemical sectors this year will drive a slight rise in overall consumption, helping to offset falling demand from the steel and construction industries.