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China's energy regulator issues guidelines on combining coal power with new energy

🇨🇳 China, Beijing 12:35 Energy Business4 Official2 updated 3 h ago first reported by 第一财经

In short

China's National Energy Administration has issued an implementation opinion on integrating coal-fired power with new energy projects. It sets out five typical scenarios and says that by the end of the 15th Five-Year Plan period the integrated models should be in mature use and annual carbon emissions of the projects should fall markedly from pre-retrofit levels.

Read the full story 3 min read

China's National Energy Administration has issued an implementation opinion on promoting the integrated development of coal power and new energy. CLS, Yicai and Jiemian reported the main points from 14:39 local time on 21 October, and China News Service and Xinhua later carried the administration's account. The opinion says integration must proceed without reducing coal power's ability to support and regulate the power system, and that the new energy capacity of an integrated project must match the regulation capacity gained by upgrading the coal units. [ 1 , 2 , 3 , 4 , 5 , 7 ]

It also calls for stronger carbon reduction at coal plants, better absorption of new energy with less curtailed wind and solar power, support for pilot applications of integration technology, and scenarios chosen to suit local conditions. By the end of the 15th Five-Year Plan period, the opinion says, integrated scenarios should be in mature use and the projects' annual carbon emissions should be markedly lower than before retrofit and construction. [ 1 , 2 , 3 , 4 , 7 ]

The opinion sets out five typical scenarios: new energy connected directly to nearby public coal units for joint delivery; new energy connected to nearby public combined heat and power coal units for clean heating; offshore wind connected to coastal public coal units; nearby new energy connected to captive coal units; and on-site or nearby new energy connected directly to a coal plant's own power-use system. In the first, third and captive-unit scenarios, Jiemian's text encourages projects to cut annual carbon emissions by more than 5% from pre-integration levels and to aim for more than 10%. [ 3 , 4 , 7 ]

On technical requirements, projects should keep a clear physical and responsibility boundary with the public grid and bear related costs fairly. They must be able to meter coal power and new energy output separately. In principle, the edge of the new energy site should be no more than 100 km in a straight line from the coal plant site, according to the text published by Jiemian. Grid stability, short-circuit current levels and power quality after grid connection must meet safety standards. The opinion also encourages research on energy storage, heat storage media such as wide-temperature molten salt, high-temperature heat pumps and electric heating equipment. [ 3 , 4 ]

In answers to reporters, an administration official said the work needs action on development models, dispatch mechanisms and funding. Projects can be developed by a single entity or a consortium and may take part in power and carbon markets. Curtailed power from new energy in integrated projects is not counted in statistics, and eligible projects can receive subsidies from central funds. Provincial energy authorities are asked to draw up detailed local policies, and grid companies are to provide connection and dispatch services. [ 4 , 6 , 8 ]

Caixin said the administration released the opinion on the evening of 21 October and linked it to the conflict between intermittent wind and solar power and the grid's regulation capacity. It reported that by the end of July, China's solar capacity reached 1.286 billion kilowatts, exceeding coal power capacity and making up 31.5% of national generating capacity, while wind capacity was 690 million kilowatts, or 16.9%. [ 8 ]

Why it matters

The opinion sets technical requirements and support measures, including central funding subsidies, for projects that pair coal plants with wind and solar. Caixin links it to the tension between intermittent wind and solar output and the grid's regulation capacity.

Key facts

  • The National Energy Administration issued the Implementation Opinion on Promoting the Integrated Development of Coal Power and New Energy. [ 1 , 2 , 3 , 4 , 7 ]
  • Integration must not reduce coal power's ability to support and regulate the power system, and the new energy capacity of a project must match the regulation capacity gained from upgrading the coal units. [ 1 , 2 , 3 , 4 ]
  • By the end of the 15th Five-Year Plan period, integrated scenarios are to be in mature use and the projects' annual carbon emissions are to be markedly lower than before retrofit and construction. [ 1 , 2 , 3 , 4 , 7 ]
  • The opinion sets out five typical scenarios, including offshore wind connected directly to coastal public coal units and new energy connected to captive coal units. [ 4 , 7 , 8 ]
  • Curtailed power from new energy in integrated projects is not counted in statistics, and eligible projects can receive subsidies from central funds. [ 4 , 6 , 8 ]
  • In principle, the edge of a project's new energy site should be no more than 100 km in a straight line from the coal plant site. [ 3 ]

Confirmed by several sources

  • The National Energy Administration issued the implementation opinion on integrating coal power with new energy, and officials answered reporters' questions on it on 21 October. [ 3 , 4 , 6 , 7 ]
  • The opinion identifies five typical integration scenarios. [ 4 , 7 , 8 ]
  • Curtailed new energy power in integrated projects is not counted in statistics, and eligible projects are to receive central funding subsidies. [ 4 , 6 , 8 ]
  • Integrated projects are to keep a clear physical and responsibility boundary with the public grid and bear related costs fairly. [ 3 , 4 , 7 ]

Still unclear

  • When the opinion was released. Business outlets published the text from 14:39 on 21 October, while Caixin said the administration released it on the evening of 21 October; the other documents say only that it was issued recently.
  • The document's exact title. Most documents call it the opinion on promoting (推动) integrated development, while one China News Service item names it as on advancing (推进) integrated development.
  • Details of the later provisions on standards and implementation. The full text available in the documents is cut off partway through the standards section, so the remaining provisions are not known.

What local media are saying

Business mediaCLS, Yicai and Jiemian relayed the opinion's main principles and its target of markedly lower carbon emissions by the end of the 15th Five-Year Plan period; Jiemian also published the scenario details and technical requirements and later the Q&A on support measures. Caixin reported the five scenarios and the funding support, and added figures on solar and wind capacity. [ 1 , 2 , 3 , 6 , 8 ]
Official sourcesChina News Service and Xinhua reported the administration's own account: the opinion proposes five scenarios and technical requirements, and officials said coal power energy-saving and carbon-reduction work has made progress since the 14th Five-Year Plan period. The Q&A listed support measures including joint development, market participation and central funding. [ 4 , 5 , 7 ]

Timeline, local time

  1. CLS reports the National Energy Administration's opinion on integrating coal power and new energy. [ 1 ]
  2. Jiemian publishes the fuller text of the opinion, including the scenarios and technical requirements. [ 3 ]
  3. China News Service publishes the administration's answers to reporters' questions on the opinion. [ 4 ]
  4. Jiemian publishes the Q&A section on measures to put the opinion into effect. [ 6 ]
  5. Xinhua reports the opinion and the five scenarios. [ 7 ]