Thermal Power Faces Decarbonization Challenges Amid Energy Transition

As carbon neutrality goals become the core driver of energy transformation, the thermal power industry—the cornerstone of electricity supply—stands at a historic crossroads. Accounting for over half of installed capacity and delivering more than 70% of electricity generation, every technological advancement in thermal power directly impacts national energy security and carbon emission targets.

The Current Landscape

China's thermal power structure remains dominated by coal, with coal-fired units comprising 85.5% of installed capacity, supplemented by natural gas. Despite market fluctuations, thermal power's strategic role as the "safety net" in electricity systems continues to strengthen. Over the next decade, thermal plants will remain the primary source of power sector emissions, yet structural optimization is inevitable through:

• Replacing small, inefficient units with larger, modern plants
• Phasing out high-energy-consuming obsolete capacity
• Transitioning to more efficient, low-carbon generation technologies

This dual-track approach combines emission reductions from existing assets with technological upgrades, marking a new phase for the industry.

The Science of Carbon Accounting

Accurate carbon measurement forms the foundation of emission reduction. Chinese power producers currently follow the Corporate Greenhouse Gas Emissions Accounting Methodology and Reporting Guidelines , which mandate precise calculations for facilities emitting over 26,000 tons of CO₂ equivalent annually. However, focusing solely on operational emissions no longer meets refined management requirements. The industry consensus now favors adopting Life Cycle Assessment (LCA) methodology.

Under LCA frameworks, thermal plants must account for comprehensive carbon footprints including:

• Full supply chain impacts from fuel extraction to transportation and combustion
• Hidden emissions like methane leakage
• Energy inputs and waste generation across construction, operation, and decommissioning

For plants implementing Carbon Capture and Storage (CCS), assessments must further encompass chemical consumption, capture equipment manufacturing, and transport infrastructure.

The Environmental Trade-offs

Emission reduction technologies don't deliver linear benefits but involve complex environmental trade-offs. Data shows coal plants with CCS achieve remarkable 64% greenhouse gas reductions, but face increased freshwater eutrophication and water consumption—a warning against single-metric optimization. In contrast, gas-fired plants demonstrate superior overall environmental performance, with most impact categories showing 50%+ improvements over coal, except for ionizing radiation.

A Strategic Approach

Amid diverse technological options, companies must avoid bandwagon approaches. LCA serves not just as an accounting tool, but as a compass for scientific decision-making. Only through full lifecycle assessments that identify potential environmental risks across technology pathways can the industry ensure its emission reduction strategies align with national objectives while maintaining long-term sustainability.