Abstract: Large quantity of coal has been consumed directly in China for a long time, which is an important factor for environmental pollution. With the goal of minimal total annual cost, an optimization model for replacing coal with electricity is proposed, with the reduction of coal consumption and the production capacity of the main coal replacement technology as constraints, and with consideration of China’s total coal consumption control target and the action plan of energy conservation and emission reduction. Research result shows that the market prospect of replacing coal with electricity is promising, but it needs the support of national policy for a win-win situation of every participator. A case study has proved the feasibility and efficiency of the proposed method. The method can be referred for long term planning of national coal replacement.

Key words: replacing coal with electricity, replacement scale, optimization model, benefit analysis