Energy security

Lu'an Chemical Group Chairman Wang Zhiqing said, "From the perspective of energy security, the development of the coal-to-oil industry is of great significance to our country."

In other efforts to leverage the region's resources, traditional industry leaders like Shanxi International Energy Group are launching renewable energy projects, including a 6-million-kilowatt wind and solar energy storage facility.

The group reported installed capacity of new energy sources, such as wind power and photovoltaic energy, exceeding 1 million kilowatts. It has also reported eight major grid-connected, photovoltaic power generation projects in the province, with a total installed capacity of 820,000 kW, and plans for other new energy projects totaling 1.23 million kW.

During the nation's 14th Five-Year Plan period (2021-25), the group has set out to "actively explore cooperation projects for clean energy bases at home and abroad, with an installed capacity of more than 8 million kilowatts of new energy, laying a solid foundation for building a green, efficient and low-carbon modern energy enterprise", the company said.

New and clean energy generation across Shanxi has already more than doubled in recent years, making up more than one-third of capacity in the province, industry figures show.

During the 13th Five-Year Plan period (2016-20), Shanxi's installed wind power capacity increased by an average of 24.16 percent a year. Installed photovoltaic capacity rose an average of 63.22 percent annually, with base photovoltaic capacity hitting 4 million kW to help propel the province to the forefront of the sector nationwide.

On the banks of the Yellow River, about 350 kilometers southwest of Changzhi, is Zhuangshang village, one of the first communities in the province to conduct a trial of widespread solar energy use. From household appliances to farming machinery, residents from more than 20 households tap power from a micro grid linked to photovoltaic panels on their roofs, under a power generation network developed by Guochen Group.

Villager Chen Yongmin called a device hanging under the eaves of his house the "sunshine treasure box".

"It turns the sunlight from the panels above into power for our home," Chen said. "We don't have electricity bills now and can even sell excess power to the grid."

Chen's solar power system, with four main panels offering a total capacity of 2 kW, was set up with 10,000 yuan, and he expects to recover the cost within six years, with stable income generated thereafter under a service cycle for the system stretching more than two decades.

Chen Wenbo, the Guochen chairman, said the micro grid setup for consolidating, storing and distributing solar power from villagers' homes means that they will not be affected even if there is less than ideal weather for charging up the photovoltaic panels.