Improve technical efficiency of China's coal-fired power enterprises: Taking a coal-fired-withdrawl context

In the process of energy transition, reference standards are needed to guide the orderly withdrawal of coal-fired power enterprises. This study applies stochastic frontier analysis to measure the technical efficiency, as the reference standard, based on data from all coal-fired power enterprises of a large Chinese power generation group from 2010 to 2015. Meanwhile, in order to make more specific policy recommendations, this paper provides a detailed analysis of the technical efficiency in three aspects: return to scale, operation hours, and regional characteristics. The empirical results show that the average technical efficiency of coal-fired power enterprises is 0.818, which still leaves room for improvement of about 20%; the industry shows slightly decreasing return to scale, which primarily results from enterprises with larger capacity but less operation hours; correlation between efficiency and operation hours varies widely among regions, with South and Northwest China in the greatest need of improving the generation assignment approach; finally, unit coal reduction and equity increase are important ways to improve technical efficiency, and older power enterprises and larger units have greater potential for high-quality power supply. The findings will serve as a reference for policy makers to promote a more effective planning of coal-fired power industry in China.(c) 2022 Published by Elsevier Ltd.