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Key tasks for resolving excess capacity in coal-fired power generation in 2020
Original title: 2020年煤电化解过剩产能工作要点
Links: Source document (in Chinese) (link). Note: this is part of a notice that also targets overcapacity in steel and coal-mining industries (link).
For provinces with red/orange/green warnings, see the original Circular on 2023 risk and early warning for coal power planning and construction (link).
Key tasks for resolving excess capacity in coal-fired power generation in 2020
In order to further enhance the supply security of power and heat, to consolidate achievements in reducing excess capacity in coal-fired power, to improve the clean and efficient development of coal-fired power generation, and in accordance with requirements from the national coal-fire power development policy, key tasks are formulated here。
1. 2020 Targets
Set out to eliminate backward coal-fired generating units that do not meet current standards (including coal-fired auto-consumer units, the same below)。In accordance with relevant laws and regulations, clean up and rectify illegal construction of coal-fired power projects。Issue and implement early warnings for risks in planning and construction of coal-fired power, plan and construct coal-fired power projects in an orderly manner as required, strictly control the volume of newly added coal-fired power generation capacity, and arrange a reasonable coal-fired power emergency backup power and emergency peak regulation capacity as required. By the end of 2020, the national coal-fired power generation capacity will be limited to 1.100 GW。
Promote retrofitting of coal-fired power plants for ultra-low emissions and energy-saving measures, with generating units in Western China that meet the required conditions finishing retrofitting by the end of 2020。
2. Eliminate and shut down backward coal-fired generating units
Implement requirements from the "Opinions on further promoting supply-side structural reform to further eliminate backward coal-fired power generation capacity and to promote optimization and upgrading of the coal-fired power generation industry" (NDRC Energy (2019) No. 431), and other relevant documents, formulate local plans for eliminating backward production capacity of coal-fired power generation units in the region in 2020, and set clear goals and tasks and organize implementation。
Power generation units included as candidates for eliminating backward production capacity of coal-fired power generation in 2020, with the exception of those units that the local government clearly uses as emergency backup, shall have demolition work completed by the end of December 2020, having removed at least two of the following components: boiler, steam turbine, generator, coal conveying belt, cooling tower, or chimney。
3. Clean up and rectify illegal construction projects
Strictly implement requirements from the "Opinions on promoting supply side reform & preventing and solving overcapacity in coal-fired power generation" (NDRC Energy [2017] No. 1404), and the "Circular on further steps for standardizing the orderly construction and operational start of electric power projects" (NDRCEnergy [2016] No. 1698) and other relevant documents, continue to do a good job of cleaning up and rectifying existing coal-fired power projects that were constructed in violation with existing regulations, and resolutely put an end to new violations in the construction of coal-fired power generation projects。
Considering together the provincial-level risk and early warning mechanism for coal power planning and construction, the power and heat supply and demand situation, project construction, etc., and according by grouping projects by how much they are required, determine what projects are required to halt construction, beyond those already required to halt construction according to the "Notice regarding the 2017 list of coal-fired power generation construction projects to be shutdown and deferred by province" (NDRC Energy [2017] No. 1727)。
4. Publish and implement annual early warnings for risks
Publish the Circular on 2023 risk and early warning for coal power planning and construction, and in accordance with the principles of moderation and order, classify and guide the approval and construction of coal-fired power projects with power produced for local consumption in the various administrate areas。
(1) In administrative areas where the indicator for installed capacity adequacy is red or orange, the approval and new construction starts of coal-fired power projects with power produced for local consumption will be suspended, and the construction schedule of coal power projects under construction will be reasonably arranged。in order to support clean heating in northern regions, where combined heat and power projects for residential consumption are truly required, and after evaluation by the relevant provincial-level energy authority, the approval procedure or start of construction may commence as usual。
(2) In administrative areas where the indicator for installed capacity adequacy is green, and where it is truly required, provided that relevant national policy requirements on land use, environmental protection, water conservancy, etc. are implemented, and after soliciting opinions from the local branch organization of the National Energy Administration, may orderly approve and start construction of coal-fired power projects with power produced for local consumption as required, within the limits of construction plans；Under the same conditions, give priority approval and priority construction start to projects for poverty alleviation, combined heat and power projects for residential consumption, and projects of integrated coal-mining and power generation enterprises。
(3) In administrative areas where the indicator for installed capacity adequacy is green and where the indicator for resource constraint is red, and where the requirements stipulated in the "Three year plan of action for winning the war to protect blue skies (State Council [2018] No. 22)" and related documents are yet to be fully implemented, new approvals and new construction starts of coal-fired power projects shall be strictly limited。
V. Strictly control new additions to coal-fired power generation capacity in all administrative areas
Strengthen control over the total amount of coal-fired power projects, and strengthen the guiding and restraining role of planning。Comprehensively work to consolidate and resolve the excess capacity of coal-fired power generation and enhance the supply security of electricity and heat, and arrange an appropriate capacity of coal power generation to come into operation。Explore and study mechanisms of coordinated and healthy development of clean electricity and coal-fired power generation, promote clean heating in northern China, and promote the consumption of clean energy。
(1) In administrative areas where the indicator for installed capacity adequacy is red or orange, in principle, no new coal-fired power projects with power produced for local consumption shall be put into operation, and where truly required, orderly and moderately arrange for coal-fired generation capacity for emergency peak regulation and backup generation capacity。To support poverty alleviation and for clean heating in northern regions, for national-level poverty-relief projects in counties where these are truly needed, power plants that have effectively served as emergency peak-regulating or backup capacity for more than two years, or combined heat and power projects for residential consumption, may be included in the annual list of projects to be put into operation in the corresponding provincial-level administrative area。
(2) In administrative areas where the indicator for installed capacity adequacy is green, give priority to the use of clean energy and inter-provincial imports of electricity, comprehensively adopt inter-provincial mutual power generation capacity, demand-side management, and optimized system backup capacity, fully utilize coal-fired power projects with power produced for local consumption, emergency backup capacity and emergency peak regulation capacity as included in national planning, and reduce the need for new coal-fired power installations。Where these are genuinely unable to satisfy demand, there shall be an appropriate amount of coal-fired power generation projects brought into operation, as required。Under the same conditions, give priority operational starts to projects for poverty alleviation, combined heat and power projects for residential consumption, and projects of integrated coal-mining and power generation enterprises。
(3) Please continue to approve, construct, and put into operation coal-fired power generation projects for inter-provincial exports of electricity as required, in accordance with the requiremenst stipulated in the "Notice on reporting coal-fired power projects to be put into operation in 2019-2020" (NDRC Energy (2019) No. 611) and other relevant documents。
6. Do a good job at emergency peak regulation reserve capacity
In order to properly deal with the power shortages during peak hours, further improve the emergency supply security of power and heat, effectively maintain the safe and stable operation of the electric power system and the secure supply of electricity and heat, and in accordance with requirements from the "Guiding opinions on the management of coal-fired power emergency backup capacity" (NDRC Energy Regulations (2018) No. 419), and the "Guiding opinions on the management of coal-fired peak regulation capacity" (Fagai Energy Regulations (2018) No. 1323) and other relevant documents, guide and urge all administrative areas to implement the requirements of those documents, and in accordance with actual conditions, reasonably arrange coal-fired emergency backup power and emergency peak regulation capacity in accordance with procedures, and carry out related tasks。
7. Comprehensively carry out energy conservation and environmental protection tasks
Comprehensively promote retrofitting for ultra-low emission and energy-saving of coal-fired power generation units in active service, with the retrofitting work further intensified in the western region in particular, and ensure that the retrofitting of eligible units is completed by the end of 2020。Encourage eligible administrative areas and enterprises to continue to expand the scope of retrofitting, and improve the clean and efficient development of coal-fired power generation throughout the entire country。
