China has launched a new national initiative to modernize its coal power sector.
Source: Economic Information Daily
China has launched a new national initiative to modernize its coal power sector. The National Development and Reform Commission and the National Energy Administration recently issued the Action Plan for Upgrading Next-Generation Coal Power Units (2025–2027), aiming to improve coal power performance across four key areas: cleaner and lower-carbon operation, reliability and safety, flexible regulation, and intelligent operation.
The plan builds on past retrofit efforts and calls for upgrades to existing units, higher standards for new projects, and pilot demonstrations of next-generation technologies. Analysts estimate the coal flexibility retrofit market could exceed 10 billion yuan annually.
Reliability is the foundation of the upgrade. The plan introduces two core indicators: the rate of meeting declared output during peak periods and the number of unplanned outages.
Flexibility is the central goal. Six performance indicators are outlined, including coal consumption per kilowatt-hour, coal use rise at low loads, minimum load for deep peak shaving, ramp rate, primary frequency regulation, and startup/shutdown flexibility. Except for two, these metrics are being formally included in policy for the first time.
On decarbonization, the plan encourages pilot projects to meet quantified carbon intensity targets. While low-carbon retrofits aren’t mandatory for all units, new plants should be designed with future upgrades in mind and are encouraged to implement them where feasible.
Smart operation will support the transition. The plan prioritizes intelligent control, predictive maintenance, and data-driven decision-making.
By 2027, coal plants with fast ramping and deep peak-shaving capabilities will be built or retrofitted in regions with grid flexibility gaps. Local governments and power producers are encouraged to deploy units that combine reliability, flexibility, low-carbon readiness, and smart technologies.
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