Coal-rich Shanxi boosts clean energy capacity

Industry officials say Shanxi, one of China’s coal-rich provinces, should step up efforts to promote clean and efficient use of coal while expanding renewable energy options to ensure long-term stability and development.

Experts attending the Taiyuan Energy Low Carbon Development Forum 2024 in Taiyuan, Shanxi province, on Tuesday said the country is fulfilling its commitment to achieve carbon neutrality by 2060. Coal-rich regions like Shanxi play a key role in balancing the country’s energy transformation.

Shanxi should continue to accelerate changes to its energy structure to support the country’s ambitious energy transformation goals, said Liu Zhenmin, China’s special envoy for climate change.

“The global energy transformation presents numerous opportunities for Shanxi, and the province should see it as a chance to create new industries and seek new growth while supporting the national energy revolution and pursuing low-carbon pathways,” Liu said.

China has made significant progress in expanding its renewable energy capacity in recent years. By the end of 2023, renewable energy accounted for 51.9% of China’s total installed capacity, surpassing coal-fired power for the first time. Renewable energy’s share of total power generation rose from 31% at the end of last year to 35% by July this year, Liu added.

Although China has built the world’s largest and most comprehensive energy industry chain, coal remains the dominant energy source, accounting for 56 percent of the country’s energy mix.

Liu said that while the move away from coal is ongoing, the process must be gradual to ensure the country’s energy supply.

“Coal will continue to be a vital part of China’s energy structure for the foreseeable future, and Shanxi should use its coal resources as a stabilizing force during the transition and play a key role in maintaining system stability as the country builds a renewable energy-dominated system.”

He stressed the importance of increasing the renewable energy potential of the Shanxi region, especially wind and solar energy, while developing energy storage capacity to support the growing share of renewable energy in the energy mix.

The analyst said Shanxi has abundant wind and solar energy resources, despite the fact that the region is known for its rich coal deposits and black gold has dominated the energy mix for years.

The province’s share of wind and solar power in total installed capacity has increased from 6 percent in 2013 to more than 38 percent in 2023 over the past decade, and is expected to rise to 52 percent by 2026, said Zhu Yicong, vice president of renewable energy and energy research at global consulting firm Rystad Energy.

“Last year, the province put into operation 8 gigawatts of new solar capacity, and we expect to put in operation 9 GW of solar capacity this year and another 11 GW next year,” Zhu said.

According to the Shanxi government, the province’s installed new and clean energy generating capacity reached 64.49 million kilowatts as of the end of June 2024, accounting for 47.22% of its total capacity.

Lu Junling, chief economist at the National Energy Administration, said that currently more than 95 percent of the country’s coal-fired power plants have achieved ultra-low emissions, and over the past decade, China has eliminated more than 100 million kW of outdated coal-fired power plants, reducing emissions from the power sector by more than 90 percent.

By the end of 2023, the installed capacity of non-fossil energy exceeded 1.5 billion kW in the country, while the installed capacity of wind and solar power increased 10-fold compared to 10 years ago. Clean energy now accounts for 58 percent of the total installed capacity, he said.

Li Chunlin, deputy head of the National Development and Reform Commission, said China already has a relatively mature and comprehensive policy, infrastructure and industrial system to support the development of energy transformation.

He added that China’s high-quality and efficient wind and photovoltaic equipment creates favorable conditions for countries around the world that want to effectively develop and use renewable energy.