China's gas generation to hit 620TWh in the next 10 years

Renewables and gas will offset the cut in coal-fired power.

BMI Research expects renewables generation to more than double over its 10-year forecast period and gas to surge by over 340% over the next 10 years as coal-fired power generation is curbed in the Chinese electricity mix.

China's renewables industry will remain the largest in the world by total installed capacity over the coming decade, with close to 190gigawatts (GW) of renewables capacity added between 2016 and 2026.

Here's more from BMI Research:

Ambitious targets in place for renewables capacity, local government-mandated regulations, wide-ranging financial incentives on offer to renewables developers and an extensive manufacturing base for renewables components are just some of the key factors that will drive growth in the renewables sector.

Investment levels into the sector have increased over the last five years, outpacing any other country globally - and we expect investment to remain robust going forward.

On the other hand, tighter environmental laws and favourable government policy for natural gas development will lead the country's state-owned hydrocarbon producers to channel investment towards natural gas projects, at the expense of oil.

This will ensure gas production increases, supporting feedstock availability for the power sector. Furthermore, gas pricing reform implemented by the government in late 2015 has lowered gas prices for the country's businesses and industrial users, which will serve to accelerate fuel-switching to gas in the industrial, power and residential sectors. We forecast gas generation to 620TWh by 2026.