Recently, the National Energy Administration (NEA) issued a formal reply to Proposal No. 00968 (Category: Resources and Environment, No. 070) at the Third Session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC). The reply stated that, going forward, the NEA and the National Development and Reform Commission (NDRC), in line with the decisions and deployments of the CPC Central Committee and the State Council, will work with relevant parties to further advance the transformation and upgrading of coal-fired power, integrating it with urban energy needs and environmental protection requirements.First, they will balance high-quality development with high-level security, better optimize the allocation of coal power resources, and advance energy-saving and consumption-reduction retrofits of coal-fired power units in an orderly manner, thereby promoting functional transformation and sustainable development of coal power.Second, they will accelerate the establishment of a unified national electricity market system, ensuring that market pricing better reflects the multidimensional value of electricity resources.
Details are as follows:

Reply to Proposal No. 00968 (Resources and Environment, No. 070) at the Third Session of the 14th CPPCC National Committee
We have received your proposal entitled “On Transforming Coal-Fired Power Plants into Urban Integrated Energy Supply Platforms and Environmental Protection Infrastructure.” After consultation with the National Development and Reform Commission, we hereby provide the following reply:
Energy and urban development are deeply integrated, mutually reinforcing, and interdependent. As a fundamental power source within China’s electricity system, promoting the transformation of coal-fired power in alignment with integrated urban energy supply and environmental protection services will revitalize existing coal power assets, facilitate the upgrading of coal-fired power, and contribute significantly to advancing the circular economy and achieving the “dual carbon” goals.Your proposal to incorporate the functional transformation of coal power to serve urban development into the “15th Five-Year” economic, energy, and urban planning, coupled with suggestions on strengthening fiscal, financial, talent, and technological support as well as publicity and guidance, is of great importance for promoting the transformation and high-quality development of coal power in China. We highly value your recommendations and have given them serious consideration.
I. We Attach Great Importance to and Actively Support the Transformation and Upgrading of Coal Power
In recent years, China has introduced a series of policies to guide the transformation and upgrading of coal power, further strengthening its role in urban energy supply and environmental governance.

First, China has promoted the transformation of coal-fired power plants into integrated energy supply platforms. In 2022, the NDRC and the NEA jointly issued the Opinions on Improving Institutional Mechanisms and Policy Measures for the Green and Low-Carbon Energy Transition, encouraging the exploration of regional integrated energy systems—encompassing power, heating (cooling), and gas supply—operated by a single market entity, and featuring complementary and diversified energy services. In 2024, a policy document on the coal-fired power industry jointly issued by the NDRC, the NEA, and eight other ministries explicitly proposed accelerating the transformation of coal power enterprises into integrated energy service providers, offering, based on local conditions, a range of products such as heat, cooling, steam, water, and compressed air, as well as services including energy diagnostics, demand response, and equipment operation and maintenance.

Second, coal-fired power plants are also supported as key environmental protection infrastructure. Recognizing their role in promoting regional coordination in pollution and carbon reduction, the NEA and the Ministry of Ecology and Environment have issued relevant documents supporting the use of existing high-efficiency coal power generation systems and centralized pollutant treatment facilities to build urban-rural ecological and environmental protection platforms. These platforms help ensure the disposal of agricultural and forestry residues, municipal solid waste, and sewage sludge as biomass resources. Since the start of the 14th Five-Year Plan period, the NEA and the Ministry of Science and Technology have jointly issued the 14th Five-Year Plan for Energy Science and Technology Innovation, which supports the promotion, adapted to local conditions, of co-firing technologies for power generation that integrate coal with agricultural and forestry residues, municipal sludge, and solid waste.

Third, financial support and market mechanisms for the green transformation and upgrading of coal power are being continuously strengthened. The NDRC’s 14th Five-Year Plan for Circular Economy Development, issued in 2021, encourages financial institutions to expand investment and financing for major projects related to the circular economy, innovate green financial products, and increase support through green credit, green bonds, green funds, and green insurance. In 2024, the aforementioned policy document on the coal-fired power industry also proposed exploring the issuance of infrastructure real estate investment trusts (REITs) for coal power projects aligned with the dual-carbon goals, aiming to revitalize existing assets and channel recovered funds into the construction of “low-carbon power plants” and clean, low-carbon transformation projects. Simultaneously, the NDRC and the NEA continue to improve the unified national electricity market system, establishing a market-based price formation mechanism that facilitates coal power’s transition towards fulfilling a dual role: ensuring basic power supply and providing system regulation services.

II. Next Steps

Regarding your proposal to incorporate the functional transformation of coal power to serve urban development into the “15th Five-Year” planning framework, the NEA and the NDRC, in line with the decisions and deployments of the CPC Central Committee and the State Council, will, together with relevant parties, continue to advance the integration of coal power transformation and upgrading with urban energy supply and environmental protection needs.We will balance high-quality development with high-level security, further optimize the allocation of coal power resources, and advance energy-saving and consumption-reduction retrofits of coal-fired power units in an orderly manner so as to promote the functional transformation and sustainable development of coal power, while at the same time accelerating the establishment of a unified national electricity market system to ensure that market pricing reflects the multidimensional value of electricity resources.
We sincerely thank you for your concern and support for China’s energy development, and we look forward to your continued guidance and input in the future.