According to the Action Plan, which has set two time points for 2025 and 2027, the goal of the low-carbon transformation of coal-fired power plants is proposed. By 2025, the first batch of low-carbon transformation projects for coal-fired power plants will start, and some coal-fired low-carbon power generation technologies will be transformed and applied. The electricity carbon emissions of relevant projects will be reduced by about 20% from the average carbon emissions of similar coal-fired units in 2023, which is significantly lower than the carbon emissions of currently operated advanced coal-fired units, and is beneficial for exploring experiences in the clean and low-carbon transformation of coal-fired power plants. By 2027, the low-carbon power generation technology of coal-fired power plants will be further expanded, and the construction and operation costs will be significantly reduced; the electricity carbon emissions of relevant projects will be reduced by about 50% from the average carbon emissions of similar coal-fired units in 2023, which is close to the carbon emissions of natural gas-fired units, and plays a strong leading role in the clean and low-carbon transformation of coal-fired power plants.

By 2027, the low-carbon power generation technology of coal-fired power plants will be further expanded, and the construction and operation costs will be significantly reduced; the electricity carbon emissions of relevant projects will be reduced by about 50% from the average carbon emissions of similar coal-fired units in 2023, which is close to the carbon emissions of natural gas-fired units, and plays a strong leading role in the clean and low-carbon transformation of coal-fired power plants.

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Officials from the National Development and Reform Commission answered questions from reporters on the Action Plan for Low-Carbon Transformation of Coal-Fired Power Plants (2024-2027).

Recently, the National Development and Reform Commission and the National Energy Administration jointly issued the Action Plan for Low-Carbon Transformation of Coal-Fired Power Plants (2024-2027) (No. 894 [2024] of the National Development and Reform Commission and the Ministry of Ecology and Environment), hereinafter referred to as the Action Plan. In order to accurately understand and grasp the policy content, officials from the National Development and Reform Commission accepted interviews and answered reporter's questions.

Q: Please introduce the background and significance of the Action Plan.

A: In recent years, China has actively promoted the clean and efficient utilization of coal, vigorously developed renewable energy, and accelerated the green and low-carbon transformation of energy, which has achieved positive results. However, influenced by the randomness and volatility of renewable energy, coal-fired power generation will still play a role in ensuring energy security during a certain period. To benchmark the carbon emissions levels of natural gas-fired units and to promote the green and low-carbon development of energy, it is an important measure to accelerate the low-carbon transformation of coal-fired power plants. It will also help achieve the carbon peak and carbon neutrality goals.

In order to fully implement the spirit of the 19th National Congress of the Communist Party of China, and earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, the National Development and Reform Commission and the National Energy Administration jointly issued the Action Plan, which clarifies the main objectives and tasks of the low-carbon transformation of coal-fired power plants and promotes comprehensive low-carbon transformation of existing and new coal-fired units, and new clean, low-carbon, safe, and efficient energy system, in accordance with the requirements of the Energy Conservation and Carbon Reduction Action Plan for 2024-2025 (No. 12 [2024] of the National Development and Reform Commission).

Q: What are the main goals proposed in the Action Plan?

A: According to the Action Plan, which has set two time points for 2025 and 2027, the goal of the low-carbon transformation of coal-fired power plants is proposed.

By 2025, the first batch of low-carbon transformation projects for coal-fired power plants will start, and some coal-fired low-carbon power generation technologies will be transformed and applied. The electricity carbon emissions of relevant projects will be reduced by about 20% from the average carbon emissions of similar coal-fired units in 2023, which is significantly lower than the carbon emissions of currently operated advanced coal-fired units, and is beneficial for exploring experiences in the clean and low-carbon transformation of coal-fired power plants.

By 2027, the low-carbon power generation technology of coal-fired power plants will be further expanded, and the construction and operation costs will be significantly reduced; the electricity carbon emissions of relevant projects will be reduced by about 50% from the average carbon emissions of similar coal-fired units in 2023, which is close to the carbon emissions of natural gas-fired units, and plays a strong leading role in the clean and low-carbon transformation of coal-fired power plants.

Q: What are the methods and requirements for the low-carbon transformation of coal-fired power plants?

A: Based on sufficient investigation, systematic analysis and in-depth demonstration, the Action Plan puts forward three reform and construction methods, and clarifies the reform and construction requirements in three aspects, including project layout, unit conditions, and carbon reduction effect.

The reform and construction methods are: first, biomass co-firing, fully utilizing biomass resources such as agricultural and forestry waste, wild plants, and energy plants to implement the coupling of coal-fired units and biomass power generation. Second, ammonia co-firing, using surplus renewable energy such as wind and solar power to electrolyze water to produce green hydrogen and synthesizing green ammonia, and implementing ammonia co-firing for coal-fired units. Third, carbon capture, utilization, and storage, using chemical, adsorption, membrane separation, and other technologies to separate and capture carbon dioxide in flue gas of coal-fired boilers, implementing efficient oil recovery, methanol preparation, and other resource utilization, or implementing geological storage according to local conditions.

In terms of renovation and construction requirements: First, project layout. For projects implementing biomass or green ammonia co-firing, the location should have a long-term stable source of biomass or green ammonia. For projects implementing carbon capture, utilization, and storage, the location and surrounding areas should have a carbon dioxide resource utilization scenario or long-term stable geological storage conditions. Second, unit conditions. Relevant units should meet basic conditions such as long expected remaining service life and good comprehensive economic performance. New units must have already been included in national planning. Encourages the coal-fired power unit to take on the task of clean and efficient utilization technology, “two joint ventures” and large-scale wind power photovoltaic base supporting coal-fired units can take the lead. Third, carbon reduction effect. The carbon reduction effect of projects completed and put into production in 2025 and 2027 is required to be explicitly stipulated, based on the carbon emission level of coal-fired units before the transformation and the average carbon emission level of similar coal-fired units in 2023.

Q: What safeguard measures does the Action Plan propose?

A: The Action Plan proposes safeguard measures to promote the low-carbon development of coal-fired power through the four aspects of funding support, policy support, power grid scheduling and dispatching, and technological innovation.

First, increase funding support. Make use of government investment to amplify the effect, and support coal-fired low-carbon transformation and construction projects that meet the conditions through funds such as super-long-term special national bonds. Relevant projects will be given priority to be included in the Green Low-carbon Advanced Technology Demonstration Project. Encourage all regions to formulate support policies based on local conditions and increase investment subsidies for coal-fired low-carbon transformation and construction projects.

Second, strengthen policy support. Explore the establishment of a sharing mechanism among the government, enterprises, and users, and provide phased support to projects on the national coal-fired low-carbon transformation and construction list. Encourage eligible projects to finance through real estate investment trusts in infrastructure, green bonds, or applying for green credit, technological innovation, and technological transformation re-loans, etc., to attract various types of investment entities to participate in and support coal-fired low-carbon transformation and construction.

Third, optimize power grid operation and scheduling. Promote the separate measurement of partial electricity generated by co-firing biomass/green ammonia and additional carbon capture, utilization, and storage facilities. Power grid companies should optimize power operation and scheduling plans, give priority to supporting coal-fired low-carbon transformation and construction projects with outstanding carbon reduction effects in accessing the grid, and give priority to accessing the grid of renewable energy generation or zero-emission generation quantities of the project.

Fourth, strengthen technological innovation and application. Strengthen the technological research and development on coal-fired biomaterial co-firing, low-cost green ammonia preparation, high-proportion co-firing of crop straw, etc., and accelerate the technological research and development on coal-fired flue gas carbon capture and reduction, absorbent reduction, large tower internals mass transfer performance improvement, capture and power generation system collaboration, control process optimization, etc., and fill in the technological gaps of carbon resource utilization, saline aquifer storage, industrial integration coupling, etc.

Q: How to effectively implement the Action Plan?

A: The Action Plan proposes requirements for organizing and implementing project organization, project implementation, and publicity and promotion.

First, project organization. The National Development and Reform Commission and the National Energy Administration organize various regions and relevant central enterprises to apply for and implement coal-fired low-carbon transformation and construction projects, conduct evaluations according to procedures and determine the national coal-fired low-carbon transformation and construction project list. Central enterprises and their holding subsidiaries' projects are reported by the central enterprise headquarters, and other projects are reported by provincial development and reform departments and energy authorities in the location.

Second, project implementation. Provincial development and reform departments and energy authorities strengthen the supply of project construction factors such as raw material fuel and land and energy, strengthen guidance and support, supervision and management and safety control. The headquarters of central enterprises are responsible for the supervision of projects within the system to ensure the engineering quality and safety. The National Development and Reform Commission and the National Energy Administration, together with relevant departments, conduct assessments and inspections of project implementation.

Third, publicity and promotion. Provincial development and reform departments, energy authorities, and relevant departments should track and dispatch project construction and operation in a timely manner, strengthen the promotion and application of advanced coal-fired low-carbon power generation technology, and submit progress reports regularly. The National Development and Reform Commission, the National Energy Administration, etc. intensify the promotion and popularization of typical experiences, and timely include them in guidance catalogs on industrial structural adjustment, green and low-carbon transformation industries, green technology promotion, etc.

Source: National Development and Reform Commission; Author: Huang Xiaodong, Zhijin Finance.