On October 18, 2023, in an interview with Zhang Xiang, the Deputy Director of the Shanxi Provincial Development and Reform Commission, we discussed the significant progress made by Shanxi over the past five years since it became the first province in China to be approved as a comprehensive reform pilot for the energy revolution.
Shanxi has long been known for its rich coal and electricity resources, but in the context of China’s dual carbon goals, the province is now actively and steadily advancing its carbon reduction initiatives. Zhang highlighted that nearly 82% of Shanxi’s coal production comes from advanced capacity, and all existing coal power units meet natural gas emission standards. Additionally, the completion of adjustments to the “West-to-East Power Transfer” project has facilitated a steady increase in coal and unconventional natural gas production.
Recent data shows that more than 50% of coal production capacity in Shanxi has achieved smart mining, and the province has established 30 demonstration coal mines for green mining. Shanxi has led the nation in coal production for four consecutive years, while its electricity exports rank second in the country, with 157.6 billion kilowatt-hours delivered to 23 provinces in 2023.
The development of new energy and clean energy in Shanxi has accelerated significantly. As of the end of August this year, the installed capacity of new energy sources made up 48% of the total, an increase of 14.1 percentage points since 2019. Production of unconventional natural gas reached 14.59 billion cubic meters in 2023, more than doubling since 2019. Moreover, hydrogen fuel heavy trucks have achieved their first fully commercial operations over medium distances.
In the energy consumption sector, Shanxi has seen a cumulative decrease in energy intensity of 10.9% during the first three years of the 14th Five-Year Plan, placing it among the leading provinces nationally. A total of 115 national-level green factories have been established.
Shanxi is leveraging its energy industry to build a technological edge in energy. The Huairou Laboratory’s Shanxi research institute is fully operational, the “Jinchuang Valley” innovation platform is being steadily implemented, and Huawei’s global headquarters for coal mining has been established in Taiyuan. The world’s first industrial internet platform for coal operations is now running, and a range of innovative products, including the first hybrid electric vehicle and a new methanol traction truck, have been launched.
In terms of institutional reforms, Shanxi’s electricity spot market has become the first to operate officially in China, and significant breakthroughs have been achieved in the exploration of coalbed methane. Pilot projects for simultaneous coal and aluminum mining are underway, while national climate investment and financing pilot projects are being steadily advanced in Taiyuan and Changzhi.
Moreover, Shanxi is collaborating with international organizations such as the Asian Development Bank and the European Investment Bank to implement a series of green and low-carbon development demonstration projects. Exports of “new three types” of products—electric vehicles, lithium batteries, and photovoltaic products—are experiencing robust growth, with solar panel export values increasing by 225.3% from January to August compared to the previous year.
Zhang concluded by stating that Shanxi aims to accelerate the planning and construction of a new energy system that prioritizes non-fossil energy as the main supply source, uses coal and coal power as a baseline security measure, relies on a new power system for essential support, and promotes energy savings through green and intelligent measures.
