• Green Glow
  • Posts
  • 🌱 How Shanxi Is Reinventing Itself as China’s Clean Energy Hub 🌿⚡

🌱 How Shanxi Is Reinventing Itself as China’s Clean Energy Hub 🌿⚡

Discover how China's coal heartland, Shanxi Province, is transforming into a clean energy powerhouse through solar, wind, hydrogen, and international support. A powerful story of energy transition, innovation, and economic reinvention.

Author

Green Glow
July 29, 2025

For decades, Shanxi Province has been the beating heart of China's coal industry. Home to more than 3,000 coal mines and the producer of over 1.27 billion tonnes of coal in 2024 alone, Shanxi’s black gold has fueled the nation’s economic engine. If it were a country, Shanxi would rank as the second-largest coal producer in the world, behind only China itself.

But now, this coal titan is undergoing a radical transformation.

As China pledges to peak carbon emissions by 2030 and achieve net-zero by 2060, Shanxi is shifting gears—from being the country’s coal capital to emerging as a beacon of renewable energy innovation.

Table of Contents

The Rise of Renewable Power

In just a few years, Shanxi has made notable progress in clean energy. By the end of 2024, the province reached a total installed clean energy capacity of 61.89 GW—roughly equal to the capacity of the entire United Kingdom. Over half of that comes from solar power, with solar PV alone hitting 34.8 GW.

The provincial government has set ambitious goals in its 14th Five-Year Plan (2021–2025):

  • 50 GW of solar PV capacity

  • 30 GW of wind power capacity

With the broader context of China now producing more wind and solar energy than the rest of the world combined, Shanxi is rapidly becoming a core contributor to this clean energy boom.

A Just Transition: From Mines to Modules

The transition away from coal is not just about megawatts—it’s about livelihoods.

Roughly one in ten people in Shanxi are employed in coal or related industries. By 2030, China is expected to cut over 1.7 million coal-related jobs, sparking fears of mass unemployment in provinces like Shanxi.

In response, local governments and companies are pioneering a just transition approach—retraining coal workers and creating alternative employment in the clean energy sector.

For instance:

  • LONGi, a leading Chinese solar firm, opened a factory in Datong that employs over 160 people, more than half of whom are former coal industry workers.

  • Meijin Energy, once a major coke producer, now manufactures 1,500 tonnes of hydrogen per year, repurposing byproducts that were once discarded.

These examples show that coal-heavy industries can pivot—with the right investment and foresight.

Innovation in Green Fuels

One of the most promising developments in Shanxi’s transformation is the move toward green hydrogen and synthetic fuels.

In 2024, Shanxi International Energy Group signed a deal for a $1.48 billion project to produce 350,000 tonnes per year of green aviation fuel—also known as e-kerosene. This fuel is made by combining wind-powered hydrogen with captured carbon dioxide, offering a cleaner alternative to jet fuel.

The two-phase project includes:

  • 300 MW of wind capacity in Phase 1 (100,000 tonnes of fuel/year)

  • 700 MW of additional wind in Phase 2 (250,000 tonnes/year)

If successful, it could become a blueprint for large-scale decarbonization in aviation, one of the hardest sectors to clean up.

International Support and Global Implications

Recognizing the scale and importance of this transition, the World Bank launched a $350 million project in 2019 to support Shanxi’s move toward a lower-carbon economy. The goal: reduce coal dependence, improve air quality, and create alternative employment pathways.

This level of international cooperation reflects a broader global interest in China’s energy evolution. As the world’s largest carbon emitter, China's success—or failure—in transitioning to clean energy will significantly impact the global fight against climate change.

Conclusion

Shanxi’s transformation is still a work in progress. Challenges remain—particularly in managing social impacts, retraining displaced workers, and ensuring energy reliability during the shift.

But the direction is clear:
A province once synonymous with coal is now becoming a symbol of China’s green ambitions.

Shanxi’s story is no longer just about extraction. It’s about reinvention—and perhaps, redemption.

FAQs

Why is Shanxi important in China’s energy landscape?

Shanxi is China’s largest coal-producing province, accounting for over 25% of national coal output. In 2024, it produced more coal than all of India, making it central to both China’s past reliance on fossil fuels and its future green transition.

What clean energy technologies are being developed in Shanxi?

Shanxi is investing heavily in solar and wind power, green hydrogen production, and synthetic fuels such as green aviation fuel (e-kerosene). The region aims to reach 50 GW of solar PV and 30 GW of wind capacity by 2025.

How is the coal workforce being supported during this transition?

To prevent mass unemployment, Shanxi is promoting a “just transition” by retraining coal workers for jobs in renewable energy and other sectors. Companies like LONGi and Meijin Energy are hiring former coal workers and repurposing industrial facilities.

What international support is Shanxi receiving?

The World Bank has invested $350 million to assist Shanxi in reducing coal dependency and creating a diversified, sustainable economy. This reflects global interest in China's role in the energy transition.

What are the risks or challenges of this transition?

Major risks include large-scale job losses, regional economic disruption, and the technical challenges of scaling renewable infrastructure quickly. Ensuring energy security and social stability remains a top priority for the province and central government.

You May Also Like

Sponsored Links