BEIJING, May 15 (Reuters) - A sharp increase in China's hydropower generation from late April is likely to continue, leading to lower-than-expected demand for coal in power plants, a coal industry association said on Wednesday.

Hydropower output in the last third of the month was up 42.9% year on year and is "very likely to maintain double-digit growth," China Coal Transportation and Distribution Association analyst Feng Huamin told a market seminar, adding that drought-stricken Yunnan province in the south has had more rain recently.

"Following the beginning of the flood season, hydropower's squeeze on thermal power generation will gradually become more obvious," Feng said, adding that the continued ramp-up in renewable capacity will also eat into coal's share of power generation.

Water levels and reserves at the Three Gorges Dam, the world's biggest hydropower plant, in central Hubei province, were up 47.8% year-on-year as of Tuesday, he added.

China's flood season is usually in May and June but it began early this year, as parts of southern China experienced record-breaking rains in late April.

Sign up here.

https://www.reuters.com/markets/commodities/rising-hydropower-weigh-chinas-coal-demand-industry-group-says-2024-05-15/