Zhejiang, one of China’s most economically advanced regions, is experiencing a surge in electricity demand, with peak usage climbing from 120 GW in 2024 to 135 GW in 2025. The province’s energy infrastructure continues to rely heavily on coal and is increasingly reliant on imported power, while renewable sources remain underutilized. Structural inefficiencies such as excessive reserve requirements, inflexible inter-provincial transmission, and uniform dispatching of coal plants have contributed to frequent negative pricing, weakening the financial viability of clean energy projects. This analysis evaluates the advantages of increasing operational flexibility within a fossil-fuel-dominated grid, balancing cost efficiency and emissions reduction without compromising energy reliability.
Key outcomes indicate that implementing differentiated dispatch methods could reduce coal-related emissions by 11% in 2025 and decrease overall system expenses by 2.5% by 2030, equivalent to annual savings of RMB 60–70 billion, without requiring large-scale energy storage investments.
Additionally, the integration of wind and solar could expand from 8.8% of the energy mix in 2025 to 16.3% by 2030, achieving this growth without curtailment. The transformation would involve high-efficiency coal units operating over 7,000 hours annually, while older, less efficient plants transition to backup roles—signaling a shift in coal’s function from primary generator to a flexible support mechanism.
— news from Centre for Research on Energy and Clean Air
— News Original —
Enhancing Zhejiang’s coal power flexibility: the economic and climate gains – Centre for Research on Energy and Clean Air
Zhejiang, one of China’s most developed provinces, faces rapidly growing electricity demand, with peak demand rising from 120 GW in 2024 to 135 GW in 2025. Yet, its power system remains dominated by coal and increasingly dependent on imports, while renewables still only play a limited role. n nAt the same time, redundant reserve requirements, rigid provincial power flows, and uniform coal power dispatch have led to frequent negative prices and weakened the economics of renewables. Against this backdrop, this study quantifies the economic and climate benefits of enhancing coal power portfolio flexibility in a coal-dominated power system, while at the same time ensuring supply security. n nKey Findings n nEmissions and cost benefits: Differentiated dispatch could cut Zhejiang’s coal emissions by 11% in 2025 and lower system costs by 2.5% in 2030 (RMB 60-70 billion annually), without the need for adding new large-scale storage. n nHigher renewable penetration: Wind and solar’s share could rise from 8.8% in 2025 to 16.3% in 2030, with no curtailment. n nCoal fleet transformation and reform needs: High-efficiency units can run for over 7,000 hours, while inefficient plants are moved to reserves and backup, marking coal’s shift from a dominant power source to a flexible and regulating resource.