This paper discusses energy conservation and emissions reduction (ECER) in China’s power sector. To better understand China’s successes and failures on energy conservation in the electricity industry, first it is important to know the status of China’s power sector, and the key energy conservation actions, as well as the achievements in the past years. Second, two ECER scenarios are constructed to probe the 2020 energy conservation potential. Results show that the potential is estimated to be more than 240 million tons of coal equivalent (Mtce). Third, the improvement of coal power operations, structures and technologies, and ambitious deployment of energy conservation measures are proposed to fully explore the potential of China’s power industry. Fourth, great challenges for China’s ECER and some suggested policies are summed up. The lessons learnt from China will provide a valuable reference and useful inputs for other emerging economies.