China’s northwestern region is facing the challenge of transitioning from coal to renewable fuels. At the same time, the region is one of the most important energy bases in China, and about 28 percent of its total power generation is exported to other provinces. With the completion of cross-regional transmission lines and large energy bases, the proportion of exports will continue to grow. Therefore, power system decarbonization in the northwestern region will have a significant impact and will provide best practices for the national power system.

RMI’s project focuses on Shaanxi province as a typical province in northwestern China. This report “Power System Decarbonization Pathways in Northwestern China” provides six key recommendations for Shaanxi to promote policies and market mechanisms to achieve early peaking.

  1. Create the necessary market conditions for the accelerated development of renewable energy
  2. Accelerate the development of energy storage through policy and market mechanisms
  3. Explore demand-side flexibility and coordinate the volatility of supply and demand
  4. Create safe and fair conditions for the transition of coal power
  5. Improve the interprovincial power trade and increase the export of clean energy through new HVDC lines
  6. Consider the transformation of industrial structures and accelerate the decoupling of economic growth and coal investment

Download the report here