According to the Intelligent Finance and Economics APP, on July 16, the National Development and Reform Commission and the National Energy Administration issued the "Action Plan for Low-carbon Transformation and Construction of Coal-fired Electricity (2024-2027)". The plan clearly states that by 2025, the first batch of coal-fired low-carbon transformation construction projects will all start, and a batch of coal-fired low-carbon power generation technologies will be transformed and applied. The carbon emissions per kilowatt-hour of related projects will decrease by around 20% compared with the average carbon emissions level of the same coal-fired units in 2023, and it will be significantly lower than the carbon emissions level of active advanced coal-fired units. This will provide a beneficial experience for the clean and low-carbon transformation of coal-fired power generation. By 2027, the low-carbon power generation technology route of coal-fired power generation will be further widened, and the construction and operation costs will significantly decrease. The carbon emissions per kilowatt-hour of related projects will decrease by about 50% compared with the average carbon emissions level of the same coal-fired units in 2023, and it will be close to the carbon emissions level of natural gas-fired units, playing a strong leading role in the clean and low-carbon transformation of coal-fired power generation.

Original text:

The National Development and Reform Commission and the National Energy Administration have issued an announcement on the "Action Plan for Low-carbon Transformation and Construction of Coal-fired Electricity (2024-2027)".

Action Plan for Low-carbon Transformation and Construction of Coal-fired Electricity (2024-2027)

Notice of the National Development and Reform Commission and the National Energy Administration on the Issuance of the Action Plan for Low-carbon Transformation and Construction of Coal-fired Electricity (2024-2027) (发改环资〔2024〕894号)

发改环资〔2024〕894号

Development and Reform Commission and Energy Bureau of all provinces, autonomous regions, municipalities directly under the Central Government, the Xinjiang Production and Construction Corps, Energy Bureau and dispatch institutions of the National Energy Administration, China Petrochemical Corporation, China Petroleum & Chemical Corporation, CNOOC Limited, China Huadian Corporation, China Datang Corporation, China Huaneng Group, State Power Investment Corporation Limited, China Three Gorges Corporation, China Energy Investment Corporation Limited, China Development Investment Group Corporation Limited, China Resources (Holdings) Co., Ltd., China Coal Energy Co., Ltd., State Grid Corporation of China, China Southern Power Grid Co., Ltd., Inner Mongolia Power (Group) Co., Ltd.:

In order to fully implement the spirit of the 19th National Congress of the Communist Party of China, conscientiously implement the decision-making arrangements of the Party Central Committee and the State Council, increase the intensity of energy conservation and emission reduction work, coordinate the transformation of existing coal-fired units to low-carbon and the construction of new low-carbon coal-fired units, accelerate the construction of a clean, low-carbon, safe and efficient new energy system, and help achieve the goal of carbon peak and carbon neutrality, the National Development and Reform Commission and the National Energy Administration have formulated the "Action Plan for Low-carbon Transformation and Construction of Coal-fired Electricity (2024-2027)". We are now issuing it to you for careful implementation.

National Development and Reform Commission

National Energy Administration

June 24, 2024

Action Plan for Low-carbon Transformation and Construction of Coal-fired Electricity (2024-2027)

In order to fully implement the spirit of the 19th National Congress of the Communist Party of China, conscientiously implement the decision-making arrangements of the Party Central Committee and the State Council, coordinate the transformation of existing coal-fired units to low-carbon and the construction of new low-carbon coal-fired units, improve the clean and efficient utilization level of coal, accelerate the construction of a clean, low-carbon, safe and efficient new energy system, and help achieve the goal of carbon peak and carbon neutrality, this Action Plan is formulated.

I. Main objectives

By 2025, the first batch of coal-fired low-carbon transformation construction projects will all start, and a batch of coal-fired low-carbon power generation technologies will be transformed and applied. The carbon emissions per kilowatt-hour of related projects will decrease by around 20% compared with the average carbon emissions level of the same coal-fired units in 2023, and it will be significantly lower than the carbon emissions level of active advanced coal-fired units. This will provide a beneficial experience for the clean and low-carbon transformation of coal-fired power generation. By 2027, the low-carbon power generation technology route of coal-fired power generation will be further widened, and the construction and operation costs will significantly decrease. The carbon emissions per kilowatt-hour of related projects will decrease by about 50% compared with the average carbon emissions level of the same coal-fired units in 2023, and it will be close to the carbon emissions level of natural gas-fired units, playing a strong leading role in the clean and low-carbon transformation of coal-fired power generation.

(2) Reconstruction and construction methods: (1) Biomass co-firing. Using biomass resources such as agricultural and forestry wastes, sand plants, and energy plants, this method comprehensively considers factors such as the supply of biomass resources, the safety requirements of coal-fired units during operation, the need for flexible adjustment, the guarantee of operational efficiency, and economic feasibility. It implements the coupling of coal-fired units and biomass power generation. After the reconstruction and construction, the coal-fired units should have the ability to co-fire with biomass fuel by more than 10%, and the coal consumption and carbon emissions level will be significantly reduced. (2) Green ammonia co-firing. Using surplus renewable energy such as wind and solar power to electrolyze water to produce green hydrogen and synthesizing green ammonia, this method implements the co-firing of coal-fired units with green ammonia for power generation to replace some of the coal consumption. After the reconstruction and construction, the coal-fired units should have the capacity to co-fire more than 10% green ammonia, and the coal consumption and carbon emissions level will be significantly reduced.

(2) Reconstruction and construction methods:

Carbon capture, utilization and storage. Using chemical, adsorption, membrane and other technologies to separate and capture carbon dioxide from flue gas of coal-fired boilers, and realize carbon dioxide regeneration, purification and compression through pressure, temperature adjustment and other methods. Promote the geological utilization technology of CO2, such as CO2 enhanced oil recovery, and chemical utilization technology of CO2, such as CO2 hydrogenation to methanol. Implement CO2 geological storage according to local conditions.

Requirements for renovation and construction.

Project layout. Prioritize the implementation of low-carbon renovation and construction of coal-fired power plants in areas with abundant renewable energy resources, good economic foundation, and suitable geological conditions. Implement biomass co-firing projects according to local conditions. The location should have long-term and stable biomass resources such as agricultural and forestry waste, energy crops, and other biomass resources that can be obtained. Implement green ammonia co-firing projects. The location should have reliable sources of green ammonia and abundant renewable energy resources to meet the needs of green ammonia preparation. Implement carbon capture, utilization and storage projects. The location and its surrounding areas should have CO2 resource utilization scenarios or long-term and stable geological storage conditions for CO2.

Unit conditions. Coal-fired power generation units undergoing low-carbon renovation and construction should meet basic conditions such as long expected residual service life and good comprehensive economy. Newly-built coal-fired power generation units must be included in national planning projects. Priority is given to the implementation of reconstruction and construction projects that couple multiple low-carbon coal-fired power generation technology routes. Encourage coal-fired power generation units that have implemented low-carbon renovation and construction to further reduce carbon emission levels. Encourage units undertaking coal-fired industrial thermal electrolysis decoupling, flexible coordinated power generation, efficient and deep peak-shaving tasks to implement low-carbon renovation and construction. Encourage the "two collaborations" of coal and power generation, and coal and renewable energy to carry out green ammonia co-firing demonstration projects in large-scale wind and photovoltaic bases in deserts and other areas. Low-carbon coal-fired power generation and construction projects should strictly implement the environmental management system to ensure that all types of pollutants are discharged up to standard. The ammonia storage facilities of the green ammonia co-firing project should be built outside the coal-fired power generation unit plant area in principle. The project implementation unit should further clarify and strictly implement specific management requirements.

Carbon reduction effect. By 2025, the carbon emission per degree of electricity of the low-carbon renovation and construction projects that have been completed and put into production shall significantly be lower than the level before their own renovation or significantly better than the current advanced level of similar coal-fired power generation units, and lower by around 20% than the average carbon emission level of similar coal-fired power generation units in 2023. Through continuous improvement and renovation, by 2027, the carbon emission per degree of electricity of the low-carbon renovation and construction projects completed and put into production shall be reduced by around 50% compared to the average carbon emission level of similar coal-fired power generation units in 2023, and approach the carbon emission level of natural gas power generation units. Under the same conditions, priority is given to projects with lower carbon emissions per degree of electricity and better technical and economic efficiency. Units included in the list of national low-carbon coal-fired power generation renovation and construction projects should comprehensively sort out the relevant engineering design, construction, operation and carbon reduction-related standards, rely on project construction to promote standard updates and fill in standard gaps.

Guarantee measures.

Increase financial support. Play the government's investment amplification effect, use ultra-long-term special national bonds and other funds to support low-carbon renovation and construction projects that meet the conditions. Relevant projects are preferentially included in the demonstration of green and low-carbon advanced technologies. The project construction unit should make overall use of relevant funds, increase investment, and strengthen the funding guarantee for project construction, operation, maintenance, and other aspects. Encourage regions to formulate supporting policies according to local conditions, and increase investment and subsidies for low-carbon renovation and construction projects of coal-fired power generation.

Strengthen policy support. For projects included in the list of national low-carbon coal-fired power generation renovation and construction projects, based on comprehensive operation costs, actual carbon reduction effects, and various market benefits, explore the establishment of a phased sharing mechanism for government, enterprises, and users to provide support policies. Encourage eligible projects to finance through channels such as issuing REITs in the infrastructure field, green bonds, applying for green loans, technological innovation, and technological transformation loans to attract various types of investment entities to participate in and support low-carbon renovation and construction of coal-fired power generation.

Optimize power grid operation and scheduling. Study and formulate the carbon emission reduction calculation method for low-carbon renovation and construction projects of coal-fired power generation. Promote the independent metering of electricity generated by biomass co-firing/green ammonia power generation and the partial power generation of coal-fired power generation units with carbon capture, utilization and storage facilities. Power grid enterprises should optimize the power operation and scheduling plan, give priority to the access of low-carbon renovation and construction projects of coal-fired power generation with prominent carbon reduction effects, and give priority to the grid connection of renewable energy power generation or zero-carbon power generation of the projects.

Strengthen technological innovation and application. Coordinate research resources such as scientific research institutes, industry associations, and backbone enterprises to accelerate key technology research and development of low-carbon coal-fired power generation. Strengthen the technical research and development of coal-fired biomass co-firing, low-cost green ammonia preparation, high-proportion co-firing of agricultural crop straws, etc. Accelerate the technical research and development of carbon dioxide capture and consumption reduction in coal-fired flue gas, reducing loss of absorbent, improving mass transfer performance of large tower internals, coordinated capture and power generation system, and process control optimization, etc. Fill in the technical gaps of carbon dioxide resource utilization, saline aquifer storage, industrial integration, and coupling, etc.

Organization and implementation.

(I) Project organization. The National Development and Reform Commission and the National Energy Administration organize regions and relevant central enterprises to declare coal-fired power low-carbon transformation construction projects, organize reviews according to procedures, and determine the list of national coal-fired power low-carbon transformation construction projects. Provincial development and reform departments, energy regulatory authorities, and central enterprise headquarters should organize project units to formulate implementation plans for coal-fired power low-carbon transformation construction and project application materials, and strictly review the authenticity, completeness, and compliance of relevant materials before submitting them to the National Development and Reform Commission and the National Energy Administration. Provincial development and reform departments and energy regulatory authorities should play a role in organizing and coordinating, guide project units in project approval (approval, record-filing), environmental impact assessment, and organize energy-saving inspections and carbon emission evaluations. Projects of central enterprises and their holding subsidiaries are declared by the central enterprise headquarters, and other projects are declared by the development and reform departments and energy regulatory authorities of the provinces where they are located.

(II) Project implementation. The provincial development and reform departments and energy regulatory authorities where the project is located should work together with relevant departments to strengthen the guarantee of raw material and fuel supply, land and energy use, and other factors for project construction, strengthen guidance, support, and supervision, ensure that the project starts and is completed on time, and guide the energy regulatory authorities of cities and counties to strengthen the safety control of project construction and operation. The headquarters of central enterprises are responsible for the implementation of projects within the system, and guide and supervise project units to do a good job in various aspects of project construction, ensure the progress of engineering construction and ensure the quality and safety of engineering. The National Development and Reform Commission and the National Energy Administration, together with relevant departments, carry out evaluations and inspections of project implementation, and for units that fail to meet carbon reduction targets, commit fraud, cheat policy support, or have safety accidents, once verified, relevant personnel are held accountable in accordance with the law and regulations, and excess electricity price subsidies are deducted and recovered depending on the severity of the circumstances.

(III) Publicity and promotion. Provincial development and reform departments and energy regulatory authorities should timely follow up on project construction and operation, strengthen the promotion and application of coal-fired power low-carbon power generation technologies with excellent technical and economic performance and significant carbon reduction effects, and regularly report relevant information to the National Development and Reform Commission and the National Energy Administration. The National Development and Reform Commission and the National Energy Administration, together with relevant departments, verify the information submitted by localities, and timely promote it at domestic and foreign major occasions if it has promotion value, and incorporate it into guidance catalogs for industrial structure adjustment, green low-carbon transformation industry, and green technology promotion directory as appropriate.