Shanxi province, China's largest coal-producing region, is accelerating its shift toward a clean and diversified energy structure as the country advances its commitments to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

The province is systematically upgrading its industrial landscape. Automated technologies and 5G networks are being deployed in underground mines to improve efficiency, while above-ground operations are transforming former coal subsidence areas into large-scale solar and wind power bases.

Concurrently, the region is integrating hydrogen-powered commercial vehicles into its freight routes, utilizing geothermal resources for district heating and capturing coal-mine methane for power generation.

As a major energy base, Shanxi's industrial transformation is considered a crucial component of China's broader decarbonization efforts, testing how resource-dependent regions can upgrade their economies while safeguarding national energy security.

This transition was a focal point of the recently concluded 2026 Taiyuan Energy Low Carbon Development Forum, co-hosted by the Ministry of Foreign Affairs, the National Energy Administration and the Shanxi provincial government.

"China's continuous breakthroughs in new energy technologies and its maturing market have created favorable conditions and set an example for the global low-carbon power transition, especially for developing nations," said Liu Zhenmin, China's special envoy for climate change, at the forum. "With international energy market volatility accelerating this year, the diverse energy supply and structure of China have demonstrated robust resilience, injecting stability into the global market."

With China's coal-fired power generation dropping below 50 percent for the first time in the first half, historically coal-reliant regions are navigating a profound macroeconomic shift.

As of the end of July, China's installed solar power capacity surpassed coal for the first time to become the country's largest single power source, a historic milestone that fundamentally reshapes the nation's energy supply landscape and accelerates its ongoing green, carbon-cutting transition, said the NEA.

Consequently, the role of coal-fired power is undergoing a profound structural shift, from a foundational baseload provider to a flexible, more auxiliary supportive power source, throttling down output to make room for renewable energy absorption while ramping up and filling in grid gaps at night or during cloudy weather when solar generation plummets.

Liu stressed that Shanxi plays a key role in this transition. During the 2021 to 2025 period, the province produced 6.5 billion metric tons of raw coal — nearly 30 percent of the national total — and supplied 2 billion tons of thermal coal to 24 provincial regions.

Despite this massive legacy, the province is rapidly breaking its path dependency. In 2025, Shanxi's new and clean energy power generation grew 24.2 percent, and its exported green electricity trading volume jumped 31.3 percent.

Liu encouraged the province to rely on coal as a stabilizing baseline while actively developing new sectors, demonstrating that managing immediate risks and pursuing long-term green growth actually support one another.

The macroeconomic backdrop of Shanxi's transition is defined by a structural shift characterized by "green expansion and coal stabilization". While China's installed renewable energy capacity has ranked first globally for consecutive years, policymakers are prioritizing grid stability.

The 15th Five-Year Plan (2026-30) features a "non-fossil energy 10-year doubling action" as a core objective. Notably, the plan also formally incorporates peak-shaving capacity into the national target metrics for the first time.

In this evolving structure, renewable energy is expanding to reduce the carbon intensity of the power sector, while coal power acts as a stabilizing force during the transition.

Liu Zhiqiang, deputy director of the China Electricity Council's planning and development department, said coal remains the "ballast stone" of China's power system's safe operation.

"While the average annual utilization hours of coal plants are trending downward to accommodate more renewables, their value in ensuring system security — such as providing rotational inertia and frequency support — has become even more prominent," he said.

A recent report by global research firm Wood Mackenzie highlights this dynamic, noting that "the strategy of leveraging coal fleets as flexible load resources, while concurrently scaling green generation, offers a practical framework for resource-rich emerging markets".

Dong Xiaoyu, executive vice-governor of Shanxi, said the province has achieved a greener energy structure, currently operating 413 intelligent coal mines, accounting for more than 30 percent of the national total.

Unconventional natural gas production has reached 75 billion cubic meters cumulatively over the past five years, supported by the completion of six large-scale gas fields, he said.

Clean power installed capacity now accounts for 55.1 percent of the province's total, officially surpassing coal power. In 2025, Shanxi recorded 40.84 million green power certificate transactions, with market-based green power trading volume reaching 10 billion kilowatt-hours, ranking among the highest in the country, Dong said.

Shanxi's industrial chain is also moving toward higher value-added operations, accelerating development in sectors such as semiconductor materials, new energy metals and electric heavy-duty trucks.

According to Dong, low-carbon concepts are already integrated into public infrastructure. The province is advancing the construction of two national-level zero-carbon industrial parks and 13 provincial-level green electricity parks. All new urban buildings are required to meet green construction standards, and clean energy vehicles now comprise 99 percent of urban buses and 98 percent of taxis province-wide, he said.

"China's unparalleled market scale and its steadfast commitment to the green transition continue to act as a powerful magnet for multinational energy companies," said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University. "Despite global macroeconomic uncertainties, foreign energy giants recognize that deeper integration into China's low-carbon supply chain is no longer just an option, but a strategic necessity for their long-term global competitiveness."

As China's digital economy expands, the rapid growth of artificial intelligence is driving a surge in computing demand. And, because data centers are highly energy-intensive, the relationship between electricity, carbon emissions and computing power has become a priority for provincial planners.

During the 14th Five-Year Plan period (2021-25), electricity consumption by Shanxi's internet data services sector — primarily data centers — multiplied by 27.7 times, maintaining an average annual growth rate of 94 percent.

From January to July this year, the sector's power consumption exceeded 4.6 billion kWh, a 22 percent year-on-year increase, accounting for more than half of the province's total incremental electricity demand. "Computing power is fundamentally altering Shanxi's electricity consumption structure. The deep integration of electricity, carbon management and computing is now an operational imperative," Dong said.

To support this demand, Shanxi is building an integrated "wind-solar-coal-storage" energy system. The province is accelerating the construction of ultra-high voltage transmission corridors, including the Datong-to-Tianjin South line, while aiming to establish 3 million kilowatts of virtual power plant regulation capacity by 2030 to intelligently manage grid loads.

Looking ahead, the Shanxi provincial government has outlined a comprehensive strategy for the 15th Five-Year Plan, focusing on security resilience, green decarbonization, industrial clustering and system integration.

To ensure baseline energy security, the province plans to construct an additional 200 intelligent mines and increase unconventional natural gas output to 30 billion cubic meters by 2030.

In terms of renewables, Shanxi will prioritize scale and centralization, developing major wind and solar bases in the Jinbei coal subsidence area and the Xinzhou comprehensive energy base, with a goal to add 100 million kW of renewable energy capacity over the next five years.

Furthermore, the recently issued development plan for the Shanxi Central City Cluster aims to optimize coal development layouts while expanding regional multi-energy complementation. The plan encourages cross-regional cooperation among new energy generation and equipment manufacturing enterprises to synchronize power production with local consumption.

"The task for new energy sources like wind and solar is to lead the charge in decarbonization," said Lin. "Meanwhile, the role of traditional coal power during this transition period is to strictly guard the baseline of power security. When renewable generation is strong, coal power steps back; when the grid faces capacity constraints, it serves as the essential backup."

Contact the writers at zhengxin@chinadaily.com.cn