Shanxi, a major coal-producing province in northern China, is stepping up efforts to build a new energy system in 2026, balancing its traditional role in securing national energy supply with the urgent need for low-carbon transition.

During the 14th "Five-Year Plan" period (2021-2025), Shanxi produced about 6.5 billion tonnes of raw coal, accounting for nearly 30% of the nation's total output. Simultaneously, Shanxi supplied 2 billion tonnes of thermal coal under long-term agreements to 24 provinces.

However, given China's broader energy restructuring and the gradual weakening of its own coal resource advantages, Shanxi faces headwinds from coordinating new energy development with ecological and resource protection, even as its installed capacity of new and clean energy surpassed that of coal power for the first time in 2025.

Consequently, "advancing energy transformation" and "accelerating the establishment of a new energy system" are highlighted in the provincial government work report, spurring discussions among delegates and committee members.

Looking ahead to the 15th "Five-Year Plan" period (2026-2030), Shanxi aims to preliminarily form a new energy system by transforming energy production, consumption, and development dynamics.

Specifically, Shanxi is expected to add 100 GW of renewable energy capacity, reach an annual output of 30 billion cubic meters of unconventional natural gas by 2030, and build itself into a source for energy technology innovation and a base for commercialization.

The year 2026 marks the beginning of the 15th "Five-Year Plan". The provincial work report emphasizes implementing nine pathways for energy technology innovation to actively develop integrated and green energy system solutions.

Key measures cover multiple areas. Shanxi aims to boost production capacity continuity and increase the share of advanced capacity, maintaining coal output at about 1.3 billion tonnes per year. It also targets building 60 new intelligent coal mines and expanding green mining pilots.

In modern coal chemical sectors, Shanxi will explore high-value uses for premium and rare coal grades, potentially for strategic reserves. It will accelerate projects like coal-to-aromatics and develop high-performance carbon fiber industrial bases.

For advanced energy-intensive industries, the province will promote the construction of green manufacturing hubs and zero-carbon factories/parks, and integrate green energy with manufacturing and finance.

Regarding coal gangue and solid waste, efforts will center on research and application of technologies for intelligent sorting, low-cost mine filling, and high-value utilization. Shanxi will promote the low-carbon utilization of coal gangue with a calorific value above 550 Kcal/kg.

For power-related developments, Shanxi plans provincial-level wind and solar bases each exceeding 500 MW, and aims for 30 GW of newly arranged wind and solar capacity, with 20 GW connected to the grid.

Shanxi also plans to upgrade existing coal-fired power plants through clean, low-carbon retrofits and build pilot projects.

The province will integrate coal power with renewables and energy storage and promote multi-energy complementarity. This includes advancing four pumped-storage hydropower projects, adding over 2 GW of new energy storage capacity, and accelerating smart grid development. Pricing mechanisms will be reformed to match this new system.

Furthermore, Shanxi will scale up carbon capture, utilization, and storage demonstrations, tackling technological challenges in low-cost capture and safe storage.

Provincial political members urge steadfast energy supply guarantees. They suggest piloting integrated "coal and new energy" low/zero-carbon mining zones in key coal mining areas and expanding clean energy capacity through large provincial renewable bases.

Some also ask relevant departments to promote public sector energy management, strengthening core technology research in smart mining and clean coal utilization.