China issues plan to support low-carbon transformation of coal-fired power

China has issued an action plan to promote the low-carbon transformation of coal-fired power, with plans to diversify financing channels and grant preferential loan policies to qualified projects.

The plan also includes improving carbon-reduction-related technologies for coal-fired power, as well as new infrastructure construction. This will help to ensure China's energy security amid the global green energy transition, experts said.

The plan, co-issued by the National Development and Reform Commission and the National Energy Administration (NEA), will enhance financial support for coal-fired power low-carbon transformation projects. This will be based partly on funds raised via ultra-long special treasury bonds, and there will be policy support based on local conditions.

Coal-fired power low-carbon transformation projects will be encouraged to diversify their financing channels through methods such as issuing green bonds or applying for technology transformation loans.

Financial support and preferential loan policies will boost financing, and more private funds may be directed into the field of coal-fired power low-carbon transformation, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Monday.

Data from the NEA showed that from January to May this year, China's total installed power generator capacity reached 3.03 billion kilowatts, up 14.1 percent year-on-year. About 1.4 billion kilowatts came from coal-fired power generators, indicating the irreplaceable role of coal in China's energy structure.

However, China is still making efforts in the green energy transition. The nation's green energy consumption accounted for 26.4 percent of overall energy consumption, 11.0 percentage points more than the level in 2012, a spokesperson for the National Bureau of Statistics said on Monday.

The plan also noted that by 2025, the first batch of coal-fired power low-carbon transformation construction projects will all have started, and the carbon emissions of the related projects will be reduced by around 20 percent compared to the average carbon emissions level of similar coal-fired power units in 2023.

By 2027, the low-carbon coal-fired power generation technology route will be further expanded, with significant reductions in construction and operating costs, and the carbon emissions will see a decline of about 50 percent from the level in 2023, according to the plan.

Cong Yi, a professor at the Tianjin School of Administration, told the Global Times on Monday that low-carbon transmission of coal-fired power could be commenced in fields such as thermal efficiency utilization, carbon capture and electricity transmission.

"The low-carbon transformation of coal-fired power will make China's green energy transition process more smooth and more moderate," Cong noted.