context: The State Council Information Office released a white paper entitled China's Energy Transformation on 29 August 2024. A series of policy documents on energy conservation and carbon reduction were issued in August, including Opinions on ramping up green transition, a working plan on accelerating building mechanisms for controlling total amount and intensity of carbon emissions and a plan for accelerating the construction of a new electricity system (2024-27).
The new white paper on China’s energy transformation notes that with industrialisation and urbanisation still underway, rising energy demand is expected to continue, reports 21st Century Business Herald.
The country faces significant long-term challenges, including a heavy industrial structure, a coal-dominated energy mix and ongoing resource and environmental constraints. To overcome these difficulties, a transformation to a more sustainable energy system is deemed crucial, according to the white paper.
The PRC's investment in the energy transformation reached US$676 bn in 2023, making it the largest energy transformation investment in the world, explains Zhang Jianhua 章建华 NEA (National Energy Administration) director. The global proportion of non-fossil energy consumption over the last decade has risen from 13.6 percent to 18.5 percent, with the PRC contributing 45.2 percent of this increase, says Zhang.
An energy equipment manufacturing industry chain has been established, positioning the clean energy sector as a key pillar of the modern industrial system, argues Wan Jinsong 万劲松 NEA deputy director.
The NEA is now advancing preparations for the upcoming 15th five-year plan, according to the report. Scheduled for release in 2026 and stretch until 2030, the plan will likely aim to increase the share of non-fossil energy consumption by 1 percentage point annually. It will also focus on large-scale, high-quality development of wind power and photovoltaic energy. Several special action plans will be introduced.
The development of the power grid is crucial, contends Wan, noting
- by the end of 2025, inter-provincial and inter-regional transmission capacity is expected to reach 360 GW, while the distribution network will be capable of integrating approximately 500 GW of distributed new energy and around 12 million charging piles
- efforts to advance the 'three-in-one' integration of coal-fired power energy conservation and consumption reduction, heating and grid operational flexibility
- the need to focus on the development of pumped storage, new energy storage and other flexible resources, while also exploring the potential of demand response capabilities