The coal power policy has been influencing the development of China’s coal power industry from the aspects of quantity control, technological progress, and market-oriented reform. Meanwhile, the strategic coal power policy of the mid- and long-term future is yet to be well-designed under the carbon peak and neutrality targets. Therefore, it is necessary to have a comprehensive overview of the coal power policy during the past and give targeted prospects for policy-makers. This paper discusses the policy effect on the development and technological progress of the coal power industry by giving an overview of the policy and reform processes of the coal power industry in China in the past 20 years. The results indicate that China’s coal power policy has promoted the progress of coal power generation technology, optimized the coal power structure, accelerated the diversified investment in the power industry, and alleviated the overcapacity problem of coal power generation. After discussion, we conclude that: (1) It is necessary to gradually reduce the average generation hours of coal-fired power units while retaining high-quality coal-fired power units. (2) The renewable energy enterprises that adopt the support services of coal power enterprises should provide reasonable capacity compensation costs to create favorable conditions and achieve sustainable development for China’s coal power industry. (3) To deploy coal power units combined with large-scale renewable energy in the western and northern regions will achieve efficient energy utilization. (4) Different strategies should be adopted for different coal power units, and the peak regulation potential of coal power units with low-capacity parameters should be explored.
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