Inspired by energy storage systems for peak load shifting (PLS), this study proposes a PLS utilization mode of electricity-generating coal gas resources for the steel industry in China. The proposed mode can help the steel industry save electricity bills (2.4%) through the introduction of a time-of-use tariff. Data of a steel enterprise are used to prove the economic benefit of the coal gas utilization mode. Given that China produces more than half of converter steel of the total production worldwide, their coal gas resources are abundant. The PLS utilization mode will have a great effect on balancing the power grid. A simulated operation model for PLS coal-fired power units is used to calculate the energy conservation and emission reduction effect of coal-fired power plants under different scenarios. The annual coal savings are 1.7-3.1%, and the annual SO2 and NOx emission reductions are 2.9-12.4% and 44.6-14.1% of the total reduction amount of the steel industry in China, respectively. (C) 2015 Elsevier Ltd. All rights reserved.