Inner Mongolia aims for marginal increase in coal output target in 2024

The region aims to target 0.8% y-o-y growth to reach 1.22 bnt of coal production in CY'24

Inner Mongolia in northern China has set ambitious coal production targets, aiming for 1.22 billion tonnes (bnt) this year, with plans to maintain production capacity above 1.2 bnt annually. Last year, it accounted for 26% of China's coal production, surpassing India's output. Additionally, the region sold 945 mnt of coal through contracts, demonstrating its significant role in the national market.

Starting 2024 positively, Inner Mongolia saw a 1.7% increase in coal production in January-February, reclaiming its position as China's top coal producer. It exceeded Shanxi's production, reaching 202.83 mnt. Besides coal, Inner Mongolia is a major electricity generator, delivering 306.5 TWh outside the region last year, maintaining its top position for 19 years.

In renewable energy, Inner Mongolia boasts substantial wind and solar resources, fostering rapid growth. The administration anticipates renewable capacity to surpass 100 GW in the first half of 2024, becoming the largest nationwide. By the second half, renewable capacity is projected to exceed coal, signalling a shift in power sources.

As of 2023, renewable energy capacity in Inner Mongolia reached 93.23 GW, constituting 43.2% of total power capacity. Renewable generation surged by 21.1% to 149.53 TWh, accounting for 20.1% of total electricity output, a 1.1 percentage point increase from the previous year. This highlights the region's commitment to renewable energy and its potential to reduce reliance on coal.

Inner Mongolia's dual focus on coal and renewable energy underscores its strategic importance as an energy base. With continued investment and development in renewables, the region aims to balance energy needs while mitigating environmental impact, aligning with China's broader energy transition goals.