During China’s annual Two Sessions, the Shanxi delegation submitted a collective proposal urging continued national support for deepening the province’s energy reform pilot program. The proposal recommends further institutional and policy innovations to accelerate the transition to a cleaner, more efficient energy system.
Source: Shanxi Daily
During China’s annual Two Sessions, the Shanxi delegation submitted a collective proposal urging continued national support for deepening the province’s energy reform pilot program. The proposal recommends further institutional and policy innovations to accelerate the transition to a cleaner, more efficient energy system.
Since China approved Shanxi as a comprehensive energy reform pilot province in 2019, the region has made significant strides in energy transition, supply security, and decarbonization efforts. As a key player in the country’s energy revolution, Shanxi has delivered major breakthroughs across several critical areas. Key Achievements in Shanxi’s Energy Reform：
1. Strengthening energy supply and ensuring national security：From 2019 to 2024, Shanxi’s coal production surged from 988 million tons to 1.269 billion tons, meeting over a quarter of China’s total demand. The province supplies thermal coal under long-term contracts to 24 provinces, stabilizing power generation nationwide. Advanced coal production capacity also expanded, rising from 68% to 82% during the same period.
Electricity exports saw a 56.1% jump, increasing from 99.13 billion kWh in 2019 to 154.7 billion kWh in 2024. Meanwhile, unconventional natural gas output more than doubled, reaching 16.5 billion cubic meters last year.
2. Accelerating the shift toward clean energy：Renewable and clean energy now make up 49.7% of Shanxi’s installed capacity, up from 33.9% in 2019. Their share in power generation also climbed from 18.1% to 27.4%, marking a steady shift toward a low-carbon energy mix.
Energy efficiency has improved significantly, with a 10.9% drop in energy intensity over the first three years of the 14th Five-Year Plan—placing Shanxi among China’s top provinces in efficiency gains.
3. Pioneering market-driven energy reforms：In December 2023, Shanxi launched China’s first fully operational electricity spot market, providing a model for other provinces to follow. That same year, the province enacted China’s first local regulation on clean and efficient coal use, setting a legal framework for sustainable coal consumption.
Additionally, Shanxi has led reforms in coalbed methane extraction, addressing disputes over overlapping mining rights and fostering collaborations between state-owned and central enterprises to develop resources more efficiently.
Looking ahead, the proposal calls for:
1. Scaling up Shanxi’s successful reforms across China
The province’s experience should serve as a national blueprint, offering replicable models for other energy-rich regions. By leveraging its pioneering role, Shanxi can help accelerate China’s broader energy transition and high-quality economic development.
2. Exploring new models for energy governance
Amid growing global energy uncertainties—driven by climate change, geopolitical tensions, and resource competition—China must continue to refine its energy strategies. The proposal suggests deepening market-based reforms, accelerating the development of a modern energy system, and strengthening international energy cooperation. Shanxi aims to enhance China’s global influence in the energy sector, balancing economic growth with energy security while contributing to China’s carbon neutrality goals.