Coal-fired power generation will dominate the electricity supply in China in the foreseeable future. Coal fired power units can play a crucial role in integrating intermittent wind energy and improving the overall energy efficiency of the power system. The integration benefits of wind power, along with the gains of high load rates of coal fired units, should be fully taken into account. An optimal model combining wind power and coal fired units is built to analyze the operational flexibility of coal fired units and the integration of wind power. Taking the coal fired units in North China Power Grid as an example, the dispatch costs and benefits are examined under the energy efficiency dispatch mode, in comparison with those under the fair dispatch rules and the installed capacity. The results show that increasing the flexibility of the power system under the energy efficiency dispatch mode may be the best choice for the power system with the high share of coal fired units to integrate more wind power, and that the units delivering flexibility services are financially influenced. The results also indicate that a certain amount of wind power curtailment may be reasonable, and that rational penalty rate and fees for the curtailment of wind power may help to optimize the operation of the power system and integrate more wind power. Based on these results, policy and strategy recommendations are proposed to promote the flexibility of coal fired units and change their operation mode and their dispatch mode in the power system.Energies 2019, 12, 2376 2 of 22 to integrate renewable energy, but hydroelectric generation is affected by the environment, seasons, etc. [7], and the capacity share of pumped-hydro energy storage stations is less than 9 percent of overall hydroelectric generation capacity in China [8]. Hydroelectric generation is also clean energy and is always granted priority dispatch. All these factors affect the flexibility services provided by the hydroelectric power units. China lacks flexibility sources for renewable energy integration, which are available in other countries with high share of renewable energy.Energies 2019, 12, x FOR PEER REVIEW 2 of 33 Hydropower and Gas-fired power stations are usually regarded as peak regulation sources or flexibility sources to integrate renewable energy, but hydroelectric generation is affected by the environment, seasons, etc. [7], and the capacity share of pumped-hydro energy storage stations is less than 9 percent of overall hydroelectric generation capacity in China [8]. Hydroelectric generation is also clean energy and is always granted priority dispatch. All these factors affect the flexibility services provided by the hydroelectric power units. China lacks flexibility sources for renewable energy integration, which are available in other countries with high share of renewable energy.