1995, Xishan Coal and Electricity Group plans to build a power plant burning cleaned coal based on the cleaned coal resources produced by Gujiao Coal Preparation Plant to form an electric power industry. Taking coal gangue produced by coal production and washing processing and fly ash and slag produced by power generation as raw materials, building materials industry will be formed, which will realize comprehensive utilization of resources, reduce environmental pollution, reduce transportation pressure and improve economic benefits. At this point, the idea of developing circular economy in Xishan has basically taken shape. From 65438 to 0997, Xishan Coal and Electricity Group put forward the idea of building two circular industrial chains of "coal-electricity-material" and "coal-coke-chemical" to realize the recycling of resources. In 2003, Xishan Coal and Electricity Group formulated the 2010 "685533" development strategy, which further clarified the specific ideas of developing circular economy.
2005 is a landmark year for Xishan Coal and Electricity Group to achieve substantial results in developing circular economy. This year, Gujiao Power Plant (Phase I Project), the largest coal-fired pit power plant in China, was put into operation, and Fenyang Coking Park was also completed and put into operation. Taking this as a symbol, Xishan initially formed two industrial chains of "coal-electricity-wood" and "coal-coke-chemical", and built two circular economy industrial parks of Gujiao Mining Area and Fenyang Coking Park. Coupled with the circular economy projects such as Xishan Thermal Power Plant, Taiyuan Coal Preparation Plant Gangue Power Plant, Duerping Coal Mine Gas Power Station, Dongqu Coal Mine Gas Power Station, Xishan successfully realized the transformation from the linear logistics mode of "resource-product-waste discharge" to the material circulation mode of "resource-product-waste renewable resources", and walked in the forefront of the national coal industry.
From June 5438 to October 2005 10, Xishan Coal and Electricity Group was identified by six ministries as the first batch of circular economy pilot units in China, and Shanxi Coal System was the only one. In the same year 18 February 18, the National Development and Reform Commission held the "Circular Economy Development Model Forum of Coal Industry" in the Great Hall of the People. At this forum, relevant leaders, experts and scholars fully affirmed Xishan's practice of developing circular economy and building a conservation-oriented coal-fired power group, calling it the "Xishan model" of circular economy.
In June 2006, Xishan was identified by Publicity Department of the Communist Party of China as a typical propaganda model of "building a conservation-oriented society". Xinhua News Agency, People's Daily, CCTV and other 12 central news media reported Xishan's typical practice of developing circular economy.
From August 3 1 day to September 1 day, 2006, Xishan hosted the on-site exchange meeting on the development of circular economy in China's coal industry. More than 300 representatives from relevant departments of the State Council, relevant provincial and municipal development and reform commissions and economic and trade commissions, key enterprises in the coal industry and scientific research institutes attended the meeting. During the meeting, delegates visited the Xishan circular economy project on the spot and spoke highly of it.