Coal to green power, Shanxi's transformation is stunning

Solar, wind resources enable rapid development of renewable energy

Technicians check solar panels installed on a former coal mining site in Yuxian county, Shanxi province. ZHU XINGXIN/CHINA DAILY

Once synonymous with coal mining and known as "the coal province", Shanxi in North China is now among the leaders in China's renewable energy transition, making significant strides in developing solar power to drive its green transformation.

Boasting sufficient solar resources and vast areas of redeveloped land, including former coal mining sites, many of which have been repurposed for large-scale solar farms, the region enjoys unique advantages compared to other provinces in developing solar energy, said analysts.

While the province has long been known for its rich coal reserves with a power mix dominated by the black gold, it also has rich wind and solar resources, making the province's resource ready for renewable developments, said Zhu Yicong, vice-president of renewables and power research at global consultancy Rystad Energy.

"Over the last decade, Shanxi's wind and solar energy share in total installed power capacity has grown from 6 percent in 2013 to over 38 percent in 2023, and we are expecting this number to further grow to 52 percent by 2026," she said.

Figures released by the consultancy show that Shanxi put 8 gigawatts new solar capacity into operation in 2023. To achieve its targets, the consultancy expects the province to put 9 GW solar capacity to operation this year and another 11 GW next year.

According to the Shanxi government's energy administration, by the end of June 2024, the province's installed capacity for new and clean energy power generation reached 64.49 million kilowatts, accounting for 47.22 percent of the total.

Aiming to achieve a total photovoltaic industry chain output value exceeding 100 billion yuan ($13.97 billion) by 2025, the province has been accelerating the development of an industrial ecosystem that includes silicon materials, silicon wafer, cells and modules, eyeing to elevate Shanxi's PV industry to the high end of the value chain.

In Shanxi's 14th Five-year Plan (2021-25) for renewable energy development, the province set a target of cumulative 30 GW wind capacity and 50 GW solar PV capacity in operation by the end of 2025, reinforcing the province's determination to move toward a cleaner power mix.

Some of the province's well-developed energy infrastructure, initially built to support its coal industry, has also been adapted and expanded to integrate solar power. This existing network facilitates the distribution and transmission of solar energy, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Shanxi's established industrial base, including energy-intensive industries, provides a ready market for locally generated solar power, he said.

According to Lin, the provincial government has shown strong support for renewable energy development, offering incentives like subsidies, tax breaks and streamlined permits to encourage investment in solar projects.

As a province historically reliant on coal, Shanxi has a strong incentive to diversify its economy. The development of solar energy provides an opportunity to shift toward more sustainable and less polluting energy sources, creating new economic opportunities, he said.

He believes that by leveraging these advantages, Shanxi province is well-positioned to lead in the development of solar energy, contributing to its economic transition and supporting China's broader renewable energy goals.

Jinneng Clean Energy Technology Co Ltd, a leading player in the renewable energy sector, is at the forefront of this transition.

"Energy is the primary battlefield in our pursuit of carbon neutrality and the company has been stepping up efforts in technology and research to improve the photoelectric conversion efficiency of our products," said Liao Jicheng, deputy general manager of Jinneng Clean Energy Technology Ltd or Jinergy.

In the face of intense industry competition, Jinergy has been leveraging its global channels to expand its reach, through its extensive international sales network and by collaborating with overseas clients on project development from the early stages, providing technical guidance, he said.

Liao said exports used to constitute 50 percent of Jinergy's total sales. While this figure has recently decreased to around 10-15 percent due to the burgeoning domestic market, overseas sales continue to grow, particularly in Southeast Asia and India.

The company is also actively developing markets in the Middle East and Africa at the moment, where energy demand is high, it said.

The global PV market remains robust despite the competitive landscape, said Liao, as the energy transition is an irreversible trend with the potential for growth in the global PV industry remaining enormous.

"Projections indicate that solar power could account for 59 percent of global energy by 2050. The fundamentals of PV development have not changed, and we remain optimistic about the future," Liao said.

As Shanxi pivots from coal to solar, the province is setting an example for other regions in China, demonstrating a commitment to a sustainable and greener future, he said.

According to Lin, despite its significant strides in solar energy development, the province also faces several challenges in its transition from coal to renewable energy, from economic transition to technological and infrastructure development.

Transitioning to solar energy requires significant investment and restructuring of the local economy, which can be a slow and complex process, he said.

On the other hand, developing a comprehensive photovoltaic industry requires advanced technology and infrastructure, while integrating solar power into the existing electrical grid also poses technical challenges, especially in maintaining grid stability and reliability, he said.

While the journey is not easy, Shanxi's transformation is part of a broader effort by China to meet its climate goals and reduce carbon emissions. By investing in renewable energy, Shanxi is not only contributing to national targets but also creating new economic opportunities and jobs in the region, said Lin.

As Shanxi continues to develop its solar energy capabilities, it serves as a model for other regions looking to transition from traditional fossil fuels to sustainable energy sources. The province's journey from coal dependency to a solar energy powerhouse reflects the potential for innovation and progress in the face of environmental and economic challenges, said Lin.

Contact the writers at zhengxin@chinadaily.com.cn