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China’s Coal Build-Out Is a Dirty, Costly Backup Plan

The country wants to make its power system more reliable, but using the dirtiest fossil fuel is probably the worst way to do it.

The Wujing coal-fired power station is seen across the Huangpu River in the Minhang district of Shanghai.

The Wujing coal-fired power station is seen across the Huangpu River in the Minhang district of Shanghai.

Photographer: HECTOR RETAMAL/AFP via Getty Images

Welcome to Elements, Bloomberg’s energy and commodities newsletter. Today, Energy Reporter Dan Murtaugh questions the wisdom of China’s ambitious coal-power plans. In Germany, the government is speeding up efforts to merge four high-voltage grid operators. Meanwhile, commodity powerhouse Trafigura Group is in talks to buy aluminum from Russia’s largest producer. If you haven’t yet signed up to get Elements sent to your inbox, you can do that here.

As anyone who’s assembled complicated home gym equipment knows, just because you build something doesn’t mean you’re going to use it. China’s power sector is about to learn that lesson in a costly way.