China's Energy Transition

by State Council Information Office of the People's Republic of China

China's Energy Transition

The State Council Information Office of the People's Republic of China

August 2024

Preface

Energy is essential to human survival and development, and the way we develop low-carbon energy will be of great significance to the future of humanity. Since the First Industrial Revolution, the extensive use of fossil fuels has propelled human progress, but has also caused major problems, such as resource depletion, climate change, and geopolitical tension. As a result, the international community widely recognizes the importance of transitioning to renewable energy sources and using energy in a sustainable way to promote people's wellbeing and drive long-term economic growth.

Over the past 75 years since the founding of the People's Republic of China in 1949, China has experienced rapid growth in its energy sector, and has emerged as the largest energy producer and consumer in the world. After the 18th National Congress of the Communist Party of China in 2012, China's energy sector entered a stage of high-quality development. In 2014, President Xi Jinping proposed a new energy security strategy aimed at revolutionizing consumption, supply, technology, and institutions, while strengthening all-round international cooperation. This strategy has charted the course and laid out the fundamental principles for China's energy development in the new era. Guided by this strategy, China is pursuing a path of energy transition that is suited to its actual conditions, follows the general trends of global development, and meets the changing needs of our times.

Based on high-quality development, China's energy transition aims to build a clean, low-carbon, safe and efficient energy system. This initiative will provide a strong guarantee for the country's economic and social development and meet the people's growing desire for a better life.

With a view to eco-environmental progress, China's energy transition is gathering pace to develop a new model of energy consumption that is economical, efficient, green and inclusive. This will create synergies for cutting carbon emissions, reducing pollution, expanding green development, and stimulating economic growth, with the ultimate goal of building harmony between humanity and nature.

Acting on the vision of a global community of shared future, China is committed to advancing its energy transition by strengthening international cooperation in green energy. As a strong advocate of global energy transition, China is prepared to collaborate with other countries to build a future of sustainable energy. China respects the energy transition path independently chosen by other developing countries based on their national conditions and advances its energy transition in an equitable, just and orderly fashion.

The Chinese government is publishing this white paper to document China's successful actions and historic achievements in energy transition over the past decade.

I. China's Path of Energy Transition in the New Era

The world is currently witnessing a new revolution in science, technology and industry. Green and low-carbon development, digital and intelligent technology, and sustainability have become the overwhelming trends of our times. Despite differences in development stages and available resources, all countries share the goal and challenge of securing their energy supply and achieving a green and low-carbon transition. Guided by its new energy security strategy, China has made significant progress in its energy transition, contributing its solutions to a key global issue of our time, demonstrating its approach to governance, and fulfilling its responsibility as a major country.

1. Energy Transition Is the Only Way Forward

The development and utilization of energy is an important aspect of the interaction between humanity and nature. When reviewing the history of human development, we see that every significant human progress is fundamentally tied to changes in energy extraction and utilization and shifts in primary energy sources.

Over the years, China has established a comprehensive energy supply system encompassing coal, oil, gas, nuclear, hydro, wind, and photovoltaic (PV) energy, providing robust impetus for the fast and sustained development of the economy and society.

China's drive towards all-round socialist modernization has brought about new requirements for high-quality energy development. Despite being the world's largest developing country, China has comparatively low per-capita energy consumption. As the country has not yet completed its industrialization and urbanization, however, its energy demand is likely to continue growing. With an industrial structure dominated by heavy industry and an energy mix primarily based on coal, China will continue to face resource and environmental constraints in the long run. Energy transition is the fundamental solution to the above challenges.

China's energy transition focuses on transforming the model and drivers of energy development by achieving the substitution of primary energy sources from fossil fuels to non-fossil fuels. This transition is essential for the country to overcome resource and environmental constraints and achieve its peak carbon and carbon neutrality goals. It is vital for the country to seize the opportunities brought about by the latest round of revolutionary changes in science, technology and industry and foster new quality productive forces. It is crucial for the country to establish green ways of production and life and realize high-quality economic and social development. It is key for the country to fulfill its responsibility as a major country and contribute to a global community of shared future. For these reasons, China has taken proactive actions to advance its energy transition and will stay committed to this initiative as an imperative for a better future.

2. Accelerating Energy Transition

China respects the global trend of energy development and firmly applies its new energy security strategy. To achieve harmony between humanity and nature, and advance human progress, China has been shifting from a resource-reliant model of energy development to one driven by innovation. The country has charted a path for energy transition that is tailored to its own realities and responsive to the needs of our times.

China's energy transition abides by the following principles:

– Putting the people first. Energy is inseparable from daily life. By upholding a people-centered development philosophy, China has improved its energy services throughout society to secure a reliable supply of clean energy and ensure that the people have a greater sense of gain, fulfillment and security.

– Pursuing green and low-carbon development. Energy transition is critical for balancing economic growth and eco-environmental protection. China adheres to green and low-carbon development that prioritizes eco-environmental protection and promotes harmony between humanity and nature. Energy transition is a vital objective for economic and social development in the country. China has made energy and resource conservation a top priority and employs a comprehensive conservation strategy while raising energy efficiency by making the best use of every bit of coal, oil and electricity. Guided by its green and low-carbon philosophy, China has taken vigorous measures to substitute renewables for fossil fuels and aims to create an energy supply system dominated by non-fossil fuels.

– Serving national development. To ensure that it always has control over its own energy supply, China has increased its capacity to meet its domestic needs. The country has applied the practice of establishing the new before discarding the old and implemented strong overall planning to ensure that safe and reliable new energy is secure before phasing out conventional energy. China has improved its energy production, supply, storage and sale systems while shoring up the weak points in its energy reserve regulation and using fossil fuels as safeguards of energy security, thus forming an effective response strategy to energy security risks and challenges.

– Boosting innovation as an impetus for growth. Innovation is the key to energy transition. By applying an innovation-driven development strategy within its energy sector, China has achieved breakthroughs in core technologies and created new technologies, industries, and business models. It aims to make new energy technology and its related industries the key drivers of industrial upgrading and foster new quality productive forces. China has also advanced market-oriented reform in its energy sector by ensuring that the market plays the decisive role in resource allocation and the government better plays its role, in order to boost the vitality of all business entities.

– Expanding opening up and cooperation. Sustainable development and climate change are common challenges for all of humanity. Holding the vision of a global community of shared future, China has been expanding high-standard opening up in the energy sector, strengthening all-round international cooperation, and advancing an energy transition towards green and low-carbon development through mutually beneficial cooperation. China has played an active role in the reform of global energy governance to help build a governance system based on equity, justice, balance and inclusiveness.

3. Making Notable Progress in Energy Transition

Over the past decade, China has furthered reform of its energy production and consumption methods, upgraded its energy supply capacity under the guidance of its new energy security strategy, and achieved historic breakthroughs in green and low-carbon energy development. These achievements have provided strong support for realizing high-quality economic and social development and better meeting the people's growing desire for a better life, and served to underpin the Beautiful China initiative.

Fast-tracking clean energy development. In 2023, the share of clean energy consumption reached 26.4 percent of China's total energy use, up 10.9 percentage points from 2013. In the same period, the share of coal consumption dropped by 12.1 percentage points. In 2023, the total installed capacity of power generation reached 2,920 GW, of which clean energy accounted for 1,700 GW, or 58.2 percent. In the same year, electricity generated from clean energy was about 3,800 TWh, accounting for 39.7 percent of the country's total electricity generation, up by around 15 percentage points from 2013. Over the past decade, electricity generated from clean energy has accounted for more than 50 percent of the increase in total electricity consumption, marking a growing share of green energy in China's energy mix.

Underpinning high-quality economic and social development. China has realized greater control over its own energy supply. Over the past decade, its capacity for primary energy production has grown by 35 percent, providing a strong basis for steady and sound economic growth. In the same period, investment in fixed assets in the energy sector totaled about RMB39 trillion, which has stimulated the growth of investment in upstream and downstream industrial chains and related industries. A series of key energy projects have been completed and put into operation, and a complete industrial chain for energy equipment manufacturing has been built. Technological innovation in new energy, hydropower, nuclear power, power transmission and transformation, and novel energy storage has accelerated, and the clean energy industry has become a new pillar of China's modern industrial system.

Meeting the people's need for a better life. Over the past decade, China's energy demand and supply have remained balanced. Energy priceshave also remained generally stable, ensuring energy security for more than 1.4 billion people. Per-capita electricity consumption has doubled from about 500 kWh to nearly 1,000 kWh over this period, and the total number of natural gas users has reached 560 million. China rose to a rank of 12th in Getting Electricity, an indicator of the global business environment by the World Bank.

The energy sector has helped to facilitate poverty alleviation and rural revitalization. Over RMB100 billion from the central budget has been invested into upgrading rural power grids, stimulating local governments and enterprises to increase investment and enabling all areas of the country to have access to electricity by 2015. The scale of household PV power installations in rural areas has reached 120 GW, across more than 5.5 million households. This has led to an income increase of RMB11 billion for farmers and the creation of around 2 million jobs per year.

Measures have been taken to meet the growing demand for green energy. By the end of 2023, the proportion of clean energy heating in northern China approached 80 percent; the total number of charging facilities for new energy vehicles nationwide increased from less than 100,000 in 2013 to almost 8.6 million.

Synergizing with high-standard eco-environmental protection. Over the past decade, average coal consumption of coal-fired power generation has reduced to 303 grams of standard coal per kilowatt-hour, with SO2 and NOX emissions of advanced coal-fired power generation units now comparable to the upper limits for natural gas power units. From 2013 to 2023, energy consumption per unit of GDP decreased by more than 26 percent, and the quality of China's refined oil products consistently improved to reach advanced international levels. The number of coal-fired boilers and power plants has decreased by more than 80 percent nationwide, and almost all bulk coal has been replaced with clean energy for winter heating in and around the Beijing-Tianjin-Hebei Region and in the Fenhe-Weihe River Plain.Green and intensive development of energy and resources has been realized, green technology for energy and resource development has been widely applied, and the eco-environment of mines has seen significant improvement. The PV-based environmental restoration model has been successfully introduced in desert and coal mining subsidence areas. The average concentration of PM2.5 has fallen by 54 percent over the past decade, and the number of days with heavy pollution has decreased by 83 percent, serving to underpin the Beautiful China initiative.Contributing to global energy transition and a clean and beautiful world. In 2023, China's investment in energy transition reached US$676 billion, making it the world's largest investor in this field. Over the past decade, China has provided premium clean energy products and services to the international market. The country has also doubled its efforts in technological innovation to upgrade new energy technology at a faster pace, contributing enormously to a sharp reduction in the costs of wind power and PV power worldwide.Through expanding opening up and cooperation, China has worked with more than 100 countries and regions on green energy projects. A large number of signature projects involving nuclear power, hydropower, and new energy have been completed. In 2023, China's exports of wind power and PV products helped other countries reduce carbon dioxide emissions by about 810 million tonnes. China's new energy industry has added to the global energy supply, eased global inflation pressures, and contributed to the global effort to combat climate change and transition to green development.

II. Promoting Green Energy Consumption

Green development is a defining feature of an eco-civilization. China firmly believes that clear waters and lush mountains are invaluable assets, and acts accordingly. It therefore plans to transition its development model to one that achieves harmony between humanity and nature as a major focus. China is moving away from the traditional path of heavy dependence on energy and resources, as the country looks to promote a green transformation in every aspect of its economic and social development.1. Strengthening Institutional Constraints for Energy Conservation and Carbon Reduction

Staying committed to prioritizing energy conservation and reining in irrational energy use, China focuses its efforts on changing the way resources are used and improving its resource efficiency.

Maximizing the policy of dual control over energy use. Controlling both the volume and intensity of energy use is a crucial institutional measure in accelerating eco-environmental progress and pursuing high-quality development. To keep up with the dynamics in its economic and social development, China has set a binding target of lowering energy intensity and has shifted its focus from controlling the volume and intensity of energy use to controlling the volume and intensity of carbon emissions. Over the past decade, through industrial restructuring and upgrading, China has introduced energy-saving and carbon reduction technologies and industries, and raised its energy efficiency across the board. As a result of these efforts, the country's energy intensity has decreased steadily, leading to energy savings equivalent to about 1.4 billion tonnes of standard coal and reducing carbon dioxide emissions by about 3 billion tonnes.

Building a multidimensional energy conservation management system. China fully enforces relevant laws and regulations such as the Energy Conservation Law and the Circular Economy Promotion Law. It works to establish and improve related institutional systems, including energy-saving reviews and supervision over fixed assets investment projects. Clear requirements for energy conservation management of key industries and enterprises have been set, and the energy-saving management of major energy consumers has been strengthened. China has also adopted an energy efficiency pacesetter system to incentivize various entities to conserve energy and raise efficiency. It has leveraged the role of taxation, financial and other policies to steer the entire society towards higher investment into energy conservation and efficiency improvements.

Promoting market-based approaches to energy conservation. China has improved its management of energy efficiency standards and labels, and made consistent efforts to formulate and revise standards on energy conservation, using such standards to guide players in various sectors to conserve energy and raise energy efficiency. By the end of 2023, it had released 335 national standards on energy consumption limits and the energy efficiency of products. The energy efficiency labeling system covers 44 categories of energy-using products across five major energy-consuming sectors. Additionally, China has actively applied market-oriented mechanisms such as energy performance contracting, and promoted "one-stop" comprehensive services, including energy conservation consultancy, diagnosis, engineering, financing, transformation and outsourcing. In 2023, the total output value of the energy conservation service industry exceeded RMB500 billion, doubling that of 2013.2. Improving Energy Conservation and Efficiency in Key Sectors

To conserve energy and increase energy efficiency, China must focus on key sectors such as industry, construction, transport, and public institutions. These sectors are major energy consumers and will therefore be fundamental in improving energy conservation and efficiency. By fully applying energy conservation standards, promoting advanced energy-efficient products, and phasing out outdated production capacity, energy efficiency is continuing to rise in these key sectors.

Tapping into the potential of industry in conserving energy. Since the industrial sector plays a pivotal role in conserving energy and raising energy efficiency, China has made lasting efforts to replace outdated production capacity and drive energy-saving technological transformation. It has promoted innovation in production techniques, process reengineering, and digital and intelligent upgrading, and provided guidance for key enterprises to refine their energy management practices. Over the past decade, the energy consumption per unit of added value of industrial enterprises of designated size – with an annual revenue of RMB20 million and above – has dropped by more than 36 percent. Comprehensive energy consumption per unit of product in the steel, electrolytic aluminum, cement, glass, and other industries has lowered by more than 9 percent on average.Panel 1 Faster Progress in Energy Conservation and Efficiency in Industry

Highlighting the benchmarking role of energy efficiency. China has raised its energy efficiency benchmarks and standards in key industries. It has renewed its advanced energy efficiency standards, energy-saving standards, and entry-level standards for key energy-consuming equipment, and promoted large-scale upgrading of equipment and trade-in of consumer goods. In order to establish role models, it has released a list of 164 pacesetting enterprises in key industries and advanced energy efficiency standards, and a list of 196 national green data centers.

Launching industry- and sector-specific energy conservation and carbon reduction campaigns. China has carried out in-depth energy efficiency diagnoses of key energy-consuming entities and accelerated the energy-saving and carbon-reducing transformation of the steel, nonferrous metals, petrochemicals, building materials, and other key industries. Additionally, efforts have been made to upgrade boilers, electric machinery, and transformers.

Conducting supervision and diagnosis on industrial energy conservation. Since 2016, special national supervision on energy conservation has been carried out in more than 30,000 industrial enterprises to encourage rational energy use. Energy conservation diagnosis services have been provided to more than 20,000 industrial enterprises, with 37,000 transformation measures being proposed.

Promoting green, energy-efficient buildings. China is currently undergoing the world's largest urbanization process. To avoid carbon lock-in, the country has implemented higher energy-efficiency standards for new buildings and is steadily advancing the energy-saving retrofit of existing buildings. China is also accelerating the development of buildings with ultralow or near-zero energy consumption. By the end of 2023, the floorage of energy-efficient buildings had surpassed 32.68 billion square meters, accounting for more than 64 percent of the total floor space of urban buildings, up nearly 30 percentage points from 2013. The floorage of buildings with ultralow or near-zero energy consumption has now surpassed 43.7 million square meters.

Developing a clean and efficient transport system in an all-round way. As logistic and travel needs continue to grow with economic and social development, energy consumption in the transport sector will also increase. China is accelerating the development of multimodal transport, and increasing the share of railways and waterways within its integrated transport system. The country has continued to prioritize the development of urban public transport, optimize its green transport service systems, and promote new energy vehicles in urban passenger transport. It has adopted motor vehicle emission standards that align with advanced international levels, phasing out vehicles that do not meet the National IV or higher level emission standards. As a result, energy intensity in transport has fallen. The comprehensive energy consumption per unit load for railway transport in 2023 dropped by some 19 percent compared with 2013. Efforts have also been made to develop an electric vehicle charging infrastructure network and improve the distribution of hydrogen and natural gas fueling stations and related service facilities. By the end of 2023, there were almost 8.6 million charging facilities and over 450 hydrogen fueling stations nationwide.

Panel 2 Faster Development of a Charging Infrastructure Network

China has the world's largest charging facility network, providing the most complete types of services covering the broadest areas. By the end of 2023, there were 8,596,000 electric vehicle charging facilities across the country, of which 2,726,000 were public and 5,870,000 were private; the overall vehicle-charger ratio arrived at 2.37:1. With a total of 21,000 charging piles in expressway rest stops or parking areas, the network of charging facilities along expressways has become increasingly extensive, allowing the public to enjoy safer, more convenient, and more efficient green travel. In Guangdong, Guangxi, Hainan, Jiangsu, Hubei and seven other provincial-level administrative units, charging stations can be found in every county, and charging piles can be found in every township.

Promoting energy conservation in public institutions. China has formulated the Regulations on Energy Conservation in Public Institutions and has initiated efforts to promote energy conservation in government departments and other public institutions. It has introduced energy efficiency retrofits through energy performance contracting and promoted the electrification of final energy consumption in public institutions. It encourages green office work and green travel, and gives priority to green, energy-efficient products in procurement. By the end of 2023, 90 percent of government departments at or above the county level had met the energy-saving standards, and 5,114 public institutions had been cited as exemplars in energy conservation. By 2023, the per capita comprehensive energy consumption in public institutions across the country had dropped by 20.4 percent compared with 2013.

3. Fostering Green Models of Energy Consumption

The Chinese government actively guides the public to prioritize green energy and carry forward the nation's traditions of diligence and thrift. It promotes the shift towards green and low-carbon ways of life and consumption that are simple, moderate and healthy.

Encouraging the consumption of renewable energy. China has adopted a system of setting annual renewable electricity consumption targets for provincial-level administrative units, and monitoring and evaluating their performance. In addition, it has established a green electricity certification system for the consumption of renewable electricity, and uses the green electricity certificates as sole proof of an entity's green electricity consumption and environmental-friendliness. It uses the consumption of green electricity as an important basis for assessing, certifying, and labeling green products. In this way, the government encourages the entire society to prioritize the use of green energy and purchase of green products and services. It also encourages competent enterprises to form low-carbon or even zero-carbon models of energy consumption. Both the Beijing 2022 Winter Olympic Games and the Hangzhou Asian Games in 2023 utilized 100 percent green electricity.

Advancing the electrification and low-carbon transition of final energy consumption. In the industrial sector, there has been a shift from traditional fuels to electricity for processes such as heating, drying, and steam supply. This has been achieved through the use of high-temperature heat pumps, electric heating, and other technologies. Additionally, efforts have been made to promote the demonstration and application of renewable hydrogen production in the chemical and metallurgical industries.In the construction sector, there has been widespread adoption of solar water heaters and electric cooking appliances. In northern China, clean heating has been actively advanced, replacing coal with clean and low-carbon energy such as electricity, natural gas, biomass, geothermal energy, and industrial exhaust heat. In 2023, the share of clean heating reached nearly 80 percent in northern China.In the transport sector, there has been a strong push for new energy vehicles, increased electrification of railways, and the use of shore power for anchored ships and parked aircraft. By the end of 2023, China had over 20.4 million new energy vehicles; the electrification rate of its railway system reached 73.8 percent; and the electrification rate of society-wide final energy consumption stood at 28 percent, an increase of about 7 percentage points from 2013.Panel 3 Remarkable Effect of Clean Winter Heating in Northern China

To support localities in advancing clean heating in accordance with their own conditions, the central government has invested a total of RMB120.9 billion, which has stimulated various local investments amounting to more than RMB400 billion. By the end of 2023, the floor space of clean heating in northern China had increased by 10.7 billion square meters over the end of 2016, and the clean heating rate of the region had risen by 46 percentage points. In and around the Beijing-Tianjin-Hebei Region, PM2.5 concentration had dropped by 41.1 percent over 2016 and the number of days with heavy pollution had decreased by 61.2 percent. The corresponding figures for the Fenhe-Weihe River Plain were 30.6 percent and 41.8 percent. The replacement of bulk coal with clean energy in heating had contributed 30 percent to the improvement of ambient air quality in northern China, giving a great boost to the quality of life.

Adopting green and low-carbon ways of life. Energy conservation and carbon reduction have been promoted throughout society. China has been actively encouraging green and low-carbon lifestyles, and has intensified its efforts to promote green living and raise the public's consciousness of the need to conserve resources. It has made greater efforts to promote green and low-carbon products and has carried out public awareness events such as the National Ecology Day, the National Energy Conservation Week, the National Low Carbon Day, and the World Environment Day, to comprehensively promote awareness and understanding of energy conservation. Green travel is promoted as the public are encouraged to make public transport, cycling, and walking their first choices for getting around. Additionally, the government has organized a green travel campaign, in which 97 of the 109 participating cities have met the standards, with their green travel rates exceeding 70 percent.

III. Moving Faster to Build a New Energy Supply System

China is committed to striking a balance between traditional and new energy sources in order to facilitate its energy transition while ensuring a stable energy supply tailored to the country's national conditions and development stage. The country has been working to improve the reliability of non-fossil fuels as alternative energy sources and leverage the supporting and balancing role of fossil fuels, as it moves towards building a clean, diversified, secure and resilient energy supply system.

1. Promoting High-quality Development of Non-fossil Energy

Accelerating the development of non-fossil energy is a necessary step in pursuing eco-environmental progress, promoting green and low-carbon economic and social development, and achieving the peak carbon and carbon neutrality goals. It is essential to increasing green productivity.

Realizing a boom in wind and solar PV power. China has abundant wind and solar resources, making them the predominant sources of clean energy generation in the country. Construction has been advanced in steps on large-scale wind and PV power bases centered around the Kubuqi, Ulan Buh, Tengger, and Badain Jaran deserts, expected to reach a total installed capacity of 450 GW. China has seen large-scale and cluster development of offshore wind farms, with a cumulative installed capacity of 37,280 MW. Distributed new energy production has also made rapid progress. Wind and PV energy projects have been piloted in rural areas featuring the "PV plus agriculture" models, including agrivoltaic farming, fishery-solar hybrid systems, and animal husbandry-solar solutions, which has opened up broad spaces for new energy production. By the end of 2023, China's cumulative installed capacities of wind and PV power stood at 441 GW and 609 GW, an elevenfold increase over the past decade. The installed capacity of distributed PV power exceeded 250 GW, accounting for more than 40 percent of the total installed capacity of PV power.

Panel 4 "PV Plus" Models Expand Green Development

China has explored innovative ways to use solar PV power and launched a number of "PV plus" models that integrate PV power generation with activities including agriculture, transport, and desertification control and prevention. These models broaden the potential uses of solar PV power and contribute to green development throughout society.

The large power station in Tunli Town, Linfen City, Shanxi Province, has an installed capacity of 30 MW. The station adopts a "PV plus agriculture" model and utilizes agrivoltaic farming, growing oil-yielding peonies in greenhouses fitted with power-generating solar panels to increase land use efficiency.

Provinces such as Shandong, Jiangsu, Shaanxi, Anhui and Sichuan have installed distributed PV systems at highway rest areas and toll stations, and on building rooftops and facades. They provide low-carbon services and integrate PV systems with transport and the surrounding landscape.China's desertification control PV project in the Kubuqi desert, Ordos City, Inner Mongolia Autonomous Region, combines PV power generation with a desert greening model. The project has an installed capacity of 2,000 MW and utilizes the space under its solar panels to grow plants and rear livestock. It is expected to restore about 6,670 hectares of desert and reduce annual sediment transport to the Yellow River by about 2 million tonnes.

Developing hydropower as conditions permit. Sound measures have been taken to coordinate hydropower development and eco-environmental conservation. Construction of large hydropower bases is underway, while existing large hydropower stations have been upgraded. By the end of 2023, the regular installed hydropower capacity in China stood at 370 GW. The green transformation and modernization of small hydropower stations have been steadily advanced, with nearly 4,000 such stations upgraded by the end of 2023 to improve their green capabilities.Panel 5 The World's Largest Clean Energy Corridor

In December 2022, the Baihetan Hydropower Station, with all its generating units put into operation, became the sixth mega cascade hydropower station on the mainstream of the Yangtze River, alongside the Wudongde, Xiluodu, Xiangjiaba, Three Gorges, and Gezhouba stations. With more than a hundred hydropower units working along the river, these stations form the world's largest clean energy corridor.

Extending 1,800 kilometers and with a height difference of over 900 meters, this clean energy corridor has a total installed capacity of over 70,000 MW, about three times that of the Three Gorges station. In 2023, the six stations produced over 276 TWh of electricity, equivalent to saving approximately 83 million tonnes of standard coal. This clean energy corridor has helped to improve China's energy mix and contribute to the realization of its peak carbon and carbon neutrality goals.

Pursuing robust, safe and orderly development of nuclear power. Nuclear power is an efficient and high-quality clean energy source. China maintains that nuclear safety is essential for the development of nuclear power. The country has adopted the most advanced technologies and strictest standards to ensure that the nuclear power units in operation remain safe and stable over a long period of time. A number of coastal nuclear power projects are now in progress: The first units of the domestically developed third-generation nuclear reactor, Hualong One, have already entered operation; the Guohe One demonstration project, another independently designed third-generation nuclear reactor, is currently under construction; and the world's first fourth-generation nuclear power plant with a high-temperature gas-cooled reactor has also officially entered commercial operation. Breakthroughs have been made in the comprehensive use of nuclear energy for clean heating and heat supply, which has expanded the scope of nuclear energy utilization. By the end of 2023, the total installed capacity of nuclear power plants in operation across China stood at 56,910 MW, 3.9 times the figure at the end of 2013. The total installed capacity of nuclear power plants under construction and in operation in China had totaled 100.33 GW by the end of 2023.

Boosting the development of biomass, geothermal and ocean energy. China has diversified the use and development of biomass energy in accordance with local conditions. It has been steadily advancing electricity generation from agricultural and forestry biomass, biogas, and urban domestic waste incineration. By the end of 2023, the installed capacity of biomass energy plants had reached 44,140 MW. In line with local conditions, China has also been promoting the use of biomass energy for clean heating and increasing the use of livestock and poultry waste to produce biogas. Additionally, it is promoting the application of clean liquid fuels such as bioethanol and biodiesel. New breakthroughs have been made in exploring mid-to-deep geothermal energy, and centralized heating projects mainly powered by geothermal energy have been built. Progress has also been made in the large-scale utilization of ocean energy.

2. Coordinating the Development of Traditional Energy and New EnergyTraditional energy and new energy constitute a relationship of complementarity and substitution. While making great efforts to boost the development of new energy, China also fully utilizes the supporting and safeguarding role of traditional energy so that new energy and traditional energy can work in synergy.

Promoting clean and efficient exploration and utilization of coal. China has established a long-term mechanism for green coal mining and built modern coal mines that are safe, intelligent and eco-friendly. It has implemented comprehensive management and ecological restoration of mining areas, resulting in continuous improvement to the eco-environment in these areas. Over the past decade, the national raw coal washing rate, the comprehensive utilization rate of mine water, and the land reclamation rate have all increased by more than 10 percentage points. The country has strengthened comprehensive management and safe utilization of coal mine gas, and the benefits of gas extraction on safe production, resource utilization, and environmental protection are increasingly visible. Over the past decade, outdated coal-fired power facilities, with a combined capacity of more than 100 GW, have been decommissioned across the country. Coordinated measures have been taken to realize energy-saving and carbon-reducing transformation of remaining coal-fired power units, increase their flexible load regulation capabilities, and upgrade their heat supply capacity. By the end of 2023, more than 95 percent of coal-fired power units had achieved ultra-low emissions, and more than 50 percent had deep peak-shaving capabilities, reducing the discharge of pollutants in the power industry by more than 90 percent.

Promoting the transition towards green oil and gas production. The annual output of crude oil has stabilized at about 200 million tonnes, and the output of natural gas has experienced an annual increase of more than 10 billion cubic meters for seven consecutive years. China has actively promoted the construction of green oil and gas fields, made significant progress in carbon capture, utilization, and storage (CCUS) technology, and built near-zero emission oil and gas demonstration areas. Additionally, the country has promoted the transformation and upgrade of its crude oil refining and petrochemicals industry, and strengthened R&D and application of technologies to produce hydrogen from renewable energy and produce chemical products through carbon dioxide hydrogenation. It has implemented sound plans to steadily upgrade the quality of refined oil and raise its light-duty vehicle emission standard from National III to National VI. It has taken China less than 10 years to upgrade the quality of its refined oil to advanced international levels, two decades quicker than in developed countries.

Panel 6 Piloting CCUS Technology in Fossil Energy Utilization

Sinopec's Qilu Company and Shengli Oilfield have completed China's first million-tonne CCUS project. The project is designed to capture carbon dioxide from industrial exhaust gas and transport it to the Shengli Oilfield through pipelines for the flooding process. While achieving long-term safe storage of carbon dioxide, CCUS technology also improves the oil recovery rate of low permeability reservoirs, increasing the oil displacement efficiency by more than 25 percent and the recovery rate by more than 12 percent.

CHN Energy has built Asia's largest CCUS facility for the coal-fired power generation sector, with a capture capacity of 500,000 tonnes per year. The project is independently designed, manufactured, and installed by China. An absorbent with low energy consumption, high capacity, and high stability has been developed to achieve high-purity capture of carbon dioxide from the flue gas of coal-fired power units, for use in industrial and other settings.

Coordinating the development of traditional and new energy. China has been transforming traditional energy industries into integrated energy systems. It has taken steps to implement wind-solar-hydro (plus storage) and wind-solar-coal (plus storage) hybrid systems in resource-rich areas. New energy power generation projects have been built in places such as coal mine industrial sites, coal mining subsidence areas, idle spaces at power plants, and oil and gas mining areas. By developing offshore wind farms to provide green power for oil and gas platforms, clean energy is supplied for the production, development, processing and conversion of traditional energy. The country is also working on hydrogen transportation by pipeline, and building integrated energy service stations supplying oil, gas, electricity and hydrogen on the basis of traditional oil and gas fueling stations.

Panel 7 Integrating Traditional and New Energy

PetroChina Jilin Oilfield has built a 150 MW wind and PV power project on the site of abandoned well stations and the surrounding vacant land. Designed to supply electricity to the oilfield, this project is connected to the oilfield's power grid nearby. In its first year of operation, it has generated a cumulative output of 380 GWh, meeting 22 percent of the oilfield's electricity needs.

Sinopec has built China's first 10,000-tonne photovoltaic hydrogen project in Kuqa, Xinjiang. The project has an installed PV power capacity of 300 MW, a hydrogen production capacity of 20,000 tonnes per year, and a hydrogen storage capacity of 210,000 standard cubic meters. The hydrogen is supplied to Sinopec's local refining and chemical enterprises nearby.

CNOOC's Haiyou Guanlan is China's first deep-sea floating wind power platform, with an installed capacity of 7 MW. It is connected to the Wenchang Oilfield power grid via submarine cables. The annual power generation capacity can reach 22,000 MWh, meeting 7 percent of the electricity needs of the oilfield.

3. Improving the Resilience of the Energy System

With the large-scale development of new energy and changes in power load characteristics, China's energy and power system is facing more operational uncertainties. Therefore, it is important that the country should increase the regulation ability of the system, keep improving its capacity for safe operation and strengthening its resistance to risk.

Boosting energy network connectivity. In order to optimize the allocation of resources and increase its large-scale and long-distance energy transmission capacity, China has accelerated the construction of a cross-country energy network. It has built three west-to-east power transmission corridors across provinces and regions in northern, central, and southern China, with a capacity of about 300 GW, and has completed 20 ultra-high-voltage direct current (UHVDC) transmission channels. It has also improved the function of major regional power grids and formed a grid framework centered on a number of regional power grids, with effective interconnection between regions. A unified national pipeline network has taken shape to optimize and coordinate oil and gas allocation and supply across regions. By the end of 2023, the total length of the long-distance oil and gas pipeline network in China was about 190,000 kilometers. This includes 33,000 kilometers of crude oil pipelines, 33,000 kilometers of refined oil pipelines, and 124,000 kilometers of natural gas pipelines.

Panel 8 West-to-East Power Transmission Optimizes Cross-Country Resource Allocation

The west-to-east power transmission project is an effective means for China to ensure a safe and reliable supply of electricity, transition towards green and low-carbon energy, and optimize the allocation of its power resources.

The project has strengthened China's capability for energy security. In 2023, China's west-to-east power transmission capacity was about 300 GW, an increase of around 130 percent from 2013. During the decade from 2013 to 2023, the cumulative amount of electricity transmitted through the project exceeded 9,000 TWh.

The project has boosted China's green and low-carbon transition. The proportion of renewable energy transmitted through the country's UHVDC transmission channels exceeded 55 percent in 2023, optimizing the nationwide allocation of clean energy resources from the western region.

The project has promoted economic growth by capitalizing on energy resources. It has reinforced energy cooperation between eastern and western regions, effectively converting the energy resource strengths of the western region into a driver for economic and social development in central and eastern regions.

The project has improved power technology and equipment. China has largely mastered the manufacturing and engineering technology of UHV core equipment. The country has quickened its steps in implementing a large number of power technology innovation demonstration projects with the assistance of the west-to-east power transmission project, effectively advancing power generation and transmission technology throughout the country.

Improving energy reserves for emergency response. China has further improved its coal reserve system, with corporate reserves as the mainstay, government reserves as a supplement, and a proper combination of product reserves and capacity reserves. An oil reserve system that integrates government and corporate reserves, and develops both strategic and commercial reserves is in place. Faster progress has been made in building a multilevel natural gas storage and peak-shaving system, with local governments, gas suppliers, pipeline transportation enterprises, and urban gas services fulfilling their respective responsibilities. Over the past decade, China's natural gas storage capacity has doubled. The country has expanded its capacity for energy emergency response by establishing a prediction and early warning mechanism, formulating emergency plans, and improving the drill system and energy dispatch mechanism to guard against emergencies.

Panel 9 Exploring V2G Technology

China is actively exploring two-way charging between new energy vehicles (NEVs) and the power grid. This technology utilizes charging and swapping facilities connected to the power supply network to leverage the flexible regulation capabilities of NEV batteries.

The China RE Center V2G Demonstration Station in Beijing is China's first commercial V2G project. The nine DC charging and discharging piles, each with a power capacity of 15 kW, discharge electricity to the Center through the V2G technology, helping to increase NEV users' income while reducing the peak power load of the Center and contributing to the stable operation of the power grid.

The V2G pilot project in Wuxi, Jiangsu Province, is the largest of its kind in China. It is a PV-powered storage and charging station equipped with 50 DC charging and discharging piles, each with a power capacity of 60 kW, to discharge megawatt-level electricity during peak demand hours.

Increasing the regulation capacity of the energy system. China has upgraded its coal-fired power units to have flexible load regulation capabilities. It has also built natural gas peak-shaving power stations and accelerated the construction of pumped-storage hydropower stations as part of the effort to diversify novel energy storage. By the end of 2023, the installed capacity of coal-fired power units with flexible load regulation capabilities was close to 700 GW, and that of pumped-storage hydropower stations 50,940 MW. The novel energy storage projects in China has a maximum output power of 31,390 MW and a total energy storage capacity of 66,870 MWh, with an average storage time of 2.1 hours. The country has strengthened complementarity and mutual assistance between grid networks and tapped into demand-side response, by means such as expanding adjustable power load and improving vehicle-to-grid (V2G) technology.

IV. Developing New Quality Productive Forces in the Energy Sector

The rapid transition to green and low-carbon energy across the globe highlights the importance of technology. Technological innovation is the accelerator of energy transition leading the development of new quality productive forces in the energy sector. China has been intensifying its efforts to implement an innovation-driven development strategy in the sector. By leveraging its competitive industries, transforming and upgrading its traditional industries, and accelerating the cultivation of industries of the future, China has better coordinated the development of its industrial and innovation chains, and spurred innovation in its energy transition.

1. Improving the System for Innovation in Energy Technology

China is improving top-level design and overall plans to establish innovation as a primary driver in energy technology. It has accelerated efforts to build a synergetic and market-oriented innovation system which boosts the role of enterprises as the main players and expands coordination between production, education, research and application.Strengthening synergetic technology innovation. China has improved top-level design and formulated plans for technological innovation, with the focus on key national nuclear power, oil and gas projects, and key research and development programs for advanced renewable energy technology, energy storage, smart power grids, hydrogen energy, and clean and efficient coal usage. Efforts have also been made to establish and improve key national energy laboratories, national engineering research centers, and R&D innovation platforms under the National Energy Administration. Through major energy projects, China has expedited technological innovation and the application of technological advances, and optimized collaboration models for breakthroughs in key energy technology and equipment, involving coordinated efforts between central and local governments, between government and enterprises, between universities and enterprises, and among research institutes.Energizing innovators. China has strengthened the primary role of energy enterprises in technological innovation. It has encouraged leading enterprises to build innovation consortia to act as both sources of innovation and leaders of modern industrial chains. The country adopts an open competition mechanism for selecting the best candidates to undertake key energy technology projects and a multi-team research mechanism for finding the best pathways and achieving optimal results, with the purpose of motivating key R&D players in innovation. Policies have been improved to incentivize whoever makes the first breakthroughs in key technology and equipment, and pilot application of major technologies and equipment has been expedited. Innovative enterprises are also supported with preferential policies and better public services to grow into hubs of innovation.

2. Accelerating Technological Innovation in Energy Transition

Focusing on the cutting-edge technologies, key fields and strategic needs in the energy sector, China has been increasing its efforts to achieve breakthroughs in technology, develop new energy technologies and industries, and facilitate the transition to green energy from traditional sources.

Developing green energy technologies. China has built complete industrial chains for the R&D, design, and integrated manufacturing of wind and solar PV equipment. The high conversion efficiency of crystalline silicon/perovskite PV cell technology has established multiple world bests, and the conversion efficiency of advanced crystalline silicon PV cells in mass production has exceeded 25 percent. The maximum single-unit capacity of onshore wind turbines now exceeds 10 MW, and offshore wind turbines with a single-unit capacity of 18 MW have rolled off the production line. China has also become a front-runner throughout the hydropower industrial chain, from design and construction to equipment manufacturing. The world's largest hydropower generating units, each having an installed capacity of 1,000 MW, are in operation at the Baihetan Hydropower Station. The country has mastered the nuclear power technologies of third-generation pressurized water reactors (PWRs) as represented by Hualong One and Guohe One, as well as fourth-generation high-temperature gas-cooled reactors. Work has begun on Linglong One, a small modular PWR demonstration project. The country is also a world leader in smart grid technology, and has built a number of flexible DC transmission projects. Additionally, the development of novel energy storage and hydrogen energy technologies is accelerating.

Panel 10 Accelerated Development of Novel Energy Storageand Hydrogen Energy Technologies

Novel energy storage: Since 2016, China's novel energy storage has been transitioning from research and development into commercial application. The technology in these systems is becoming increasingly diverse. Lithium-ion batteries still have the largest installed storage capacity, but physical energy storage technologies – including compressed air energy storage and flywheel energy storage – as well as electrochemical energy storage technologies, including flow batteries and sodium-ion batteries, are undergoing rapid development. A number of novel energy storage technologies are now at the demonstration stage and are steadily advancing, including 300 MW compressed air energy storage, 100 MW flow battery energy storage, standalone MW-class flywheel energy storage, and gravity energy storage. The installed capacities of independent energy storage and shared energy storage are increasing, and industrial and commercial energy storage is currently experiencing a boom in development.

Hydrogen energy: China is a world leader in the technology for producing hydrogen from alkaline water electrolysis. An alkaline electrolyzer capable of producing 3,000 standard cubic meters of hydrogen per hour has been developed, while an MW-class proton exchange membrane (PEM) electrolyzer is undergoing thorough engineering validation testing.

Improving the clean and efficient utilization of traditional energy sources. China is applying supercritical and ultra-supercritical power generation and deep peak-shaving technologies in the coal-fired power industry to raise its environmental and energy efficiency indicators to world-leading standards. Advanced oil and gas exploration and production technologies have been industrialized, such as carbon dioxide flooding, horizontal drilling, and shale gas development, and significant progress has been made in deep-sea oil and gas exploration technologies. Shenhai-1, the world's first 100,000-tonne deep-sea semi-submersible oil production and storage platform, is operational, to help advance the green transformation and upgrading of the oil and gas industry.

3. Creating New Growth Points to Upgrade the Energy Sector

China is actively integrating digital technology into the energy sector and fostering new technologies, business forms and models to upgrade the energy sector and modernize industrial chains.

Transforming and upgrading the energy sector with digital and intelligent technologies. China has accelerated the application of digital and intelligent technologies to upgrade energy infrastructure for power plants, oil and gas fields, and coal mines, and to improve decision-making, operational efficiency, and service quality of enterprises. It has fast-tracked the construction of a new power system that allows information sharing among all entities across the generation-grid-load-storage chain. This enables panoramic perception, overall controllability, effective coordination between transmission and distribution grids, and real-time regulation of power supplies, which in turn improve the efficiency of power resource allocation and operational safety of the system. Plans are in place to create a digital end-use ecosystem, to build smart energy cities and communities, to improve the coordinated regulation and intelligence level of energy consumption systems, to unlock new models for smart energy use, and to upgrade green consumption with the digital economy.

Panel 11 Faster Digital and Intelligent Transformation in Energy

Digital and intelligent transformation in energy has helped energy enterprises improve production efficiency, lower production costs, and secure a reliable supply of energy.

Smart coal mines. China has accelerated the construction of smart coal mines adapted to local conditions. Smart mine technology has been applied in various scenarios and a number of model smart mines have been established. By the end of 2023, more than 2,500 smart mining sites had been built.

Smart oil and gas fields. PetroChina has constructed 245,000 digital wells and 26,100 digital field stations. Changqing Oilfield has built China's largest internet of things platform for oil and gas production. The digitalization rates of oil and gas wells and field stations have reached 98.2 percent and 100 percent, and more than 83 percent of field stations are unmanned.

Smart power plants. Major power generation groups have developed cloud platforms. Intelligent equipment and technology are now widely used in the monitoring, operation, and inspection of power generators, as well as in fuel management and safety management. Most new generators and some existing generators have been equipped with intelligent infrastructure.

Smart grids. An intelligent power dispatching system is now in full operation. Most substations are now unmanned and managed through remote control, with power distribution automation exceeding 90 percent. Robots and drones are widely used in grid inspection. The world's largest system for wide-area dynamic monitoring of grids has been built, and platforms such as new energy cloud and power demand-side management continue to be improved in support of the digital, automation, and informatization needs of the new power system.

Fostering new business forms and models in the energy sector. China has optimized and integrated its resources for electricity generation, grid infrastructure, and load management to build a new model of power supply based on close connectivity, coordination and interaction across the generation-grid-load-storage chain. Smart microgrids have been built for a variety of scenarios in the industrial, transport, construction and other sectors, allowing the local consumption of new energy. Virtual power plants have been created to increase the regulation capacity of the power system, and new integrated energy service models have been introduced to improve comprehensive energy efficiency, such as combined cooling, heating and power systems for natural gas utilization, geothermal power, distributed new energy, novel energy storage, and waste heat utilization.

Panel 12 Growing New Business Forms and Models in the Energy Sector

The grid-friendly green power station in Ulan Qab, Inner Mongolia, has a generating capacity of 1,700 MW of wind power and 300 MW of PV power, and an electrochemical energy storage system with a maximum output power of 550 MW and a total energy storage capacity of 1,100 MWh. Through leveraging energy storage regulation and intelligent control, the station has realized controllability and adjustability, and provided support for the overall power supply. While fully accommodating new energy, the station has improved its peak regulation performance and explored pathways for a safe and reliable transition to new energy.

The intelligent dispatching and management cloud platform of Shenzhen's virtual power plant has realized regular and market-oriented operation through its management center, enabling effective interaction between electricity generation, grid, and load. It has access to about 2,050 MW adjustable electricity loads and 450 MW distributed PV power with a regulation capacity of over 500 MW. In 2023, this platform regulated about 1,300 MWh of electricity.

The green microgrid project in ABB Xiamen Hub has built a full-factor DC microgrid system based on smart power solutions, and designed an off-grid operation model to improve the energy efficiency and reliability of the Hub. Connected to the Xiamen virtual power plant operation platform, this project can manage up to 20 percent of the electricity demand through flexible load control. The project has lowered the overall cost of electricity consumption by 23 percent.

V. Modernizing Energy Governance

High-quality development in China's energy sector requires a significant effort to modernize energy governance and establish a new energy-producing dynamic in tandem with this effort. Through deeper reform, improved policies, strategic plans, and the rule of law as guarantee, China has been able to fully leverage the decisive role of the market in resource allocation while ensuring that the government better plays its role. This has created an enabling environment for the green and low-carbon energy transition.

1. Building a Fair and Open Energy Market with Effective CompetitionChina has furthered market-oriented reform in the energy sector. It has accelerated the development of a market structure and system allowing effective competition, and has improved the mechanism for having energy prices determined primarily through market forces. The country has also focused on building a unified national market, removing barriers within the energy market, and facilitating smooth and efficient market operations. These efforts are designed to create a business enabling environment that is stable, fair, transparent and predictable.

Advancing market-oriented reform in the energy sector. The monopoly held by power grid enterprises in the purchase and sale of electricity has been largely eliminated, and market competition has been introduced into power generation and sale. Private investment is now welcome in power distribution, and as a result, new market entities are thriving in the energy sector, including integrated energy service providers, virtual power plants, and new energy storage enterprises. Private enterprises have become the main force in China's new energy sector, making up about 60 percent of all wind turbine manufacturers and almost all photovoltaic equipment manufacturers. The reform of oil and gas institutions is making further progress. A national oil and gas pipeline network corporation has been established, gradually creating a landscape wherein oil and gas are supplied by multiple entities through diverse channels, transported via a unified, highly efficient network of pipelines, and sold in a fully competitive market.

Developing a unified national energy market. China has accelerated progress on a unified national electricity market system that efficiently coordinates trade within and between provinces and regions and integrates medium- and long-term trade, spot trading, and trade in ancillary services. Trading centers for electricity, oil and gas, and coal have been established to create open and transparent energy trading platforms with complete functions. The share of market-traded electricity as part of the national total electricity consumption increased from 17 percent in 2016 to 61.4 percent in 2023. The share of market-traded wind and photovoltaic power accounted for 47 percent of total wind and photovoltaic power generation in 2023. These developments have contributed to a better allocation of electricity and a more efficient utilization of renewable energy.

Panel 13 Faster Progress in Building a Unified National Electricity Market System

A multitiered electricity market system has taken shape. The development of provincial markets is advancing in China, with full coverage of medium- and long-term trade and trade in ancillary services. Electricity spot markets in Shanxi, Guangdong and Shandong provinces have commenced full operation, and those in Gansu and the western part of Inner Mongolia have successfully completed trial operations with long-cycle settlement. Other regions are currently exploring the formation of spot markets. Cross-provincial and cross-regional market-based trade is expanding. A regional electricity market in southern China is conducting trial operations with settlement.

Market coverage is expanding. Enterprises generating electricity from coal, natural gas, nuclear, and renewable energy sources participate in market trading in an orderly manner. Market entities have now expanded to include virtual power plants, independent power storage enterprises, and other novel entities. The number of entities registered with electricity trading institutions has grown from 42,000 in 2016 to 743,000 in 2023.

Improving energy price formation mechanisms. Market-based energy pricing reform is furthering in China. The country encourages the orderly market trading of electricity from various energy sources and works consistently to improve its feed-in tariff policies for new energy. It has completely removed price controls over electricity for industrial and commercial use. China has established a capacity tariff mechanism for coal-fired power to transition coal from being the primary power source into serving a supporting and balancing role. The country has issued policies on tiered electricity pricing for energy-intensive industries to help conserve energy and reduce emissions. It has improved its pricing policy based on time of use to guide power users to reduce peak demand and shift their energy use to off-peak hours. It has established a price regulation system for natural monopolies that is based on authorized costs plus reasonable profits, and places equal emphasis on both incentives and constraints. Additionally, the country has improved its refined oil pricing mechanism to better reflect changes in international crude oil prices and domestic supply and demand dynamics. Advances have also been made in the market-oriented reform of natural gas citygate prices, as well as in the medium- and long-term contract system and market-based price formation mechanism of coal.

2. Strengthening Government Guidance and Services

China has been accelerating the transformation of government functions and bringing into full play the strategic guiding role of national development plans. It has strengthened the coordination of fiscal, taxation, investment, financing, and other macroeconomic policies, reinforced market regulation, and improved its public services, in order to ensure both efficiency and fairness in its energy transition.Boosting the guiding role of development plans. China has been promoting a strategy to optimize energy production and consumption. It has formulated medium- to long-term and five-year overall plans for the energy sector as well as special plans for the development of renewable energy. All of them are overarching plans for green and low-carbon development of the energy sector. They guide the directions for energy transition, the deployment of major energy projects, the allocation of public resources, and the use of private investment. China has strengthened coordination of its plans on energy with those on eco-environmental protection and territorial space utilization so as to provide essential safeguards for the green and low-carbon transition.

Panel 14 Developing a System of Energy Standards for Green and Low-Carbon Transition

Improving the policy system for energy standards. In order to achieve China's high-quality development goals in the energy sector and to align with the clean use of fossil fuels, the extensive use of non-fossil fuels, the digital and intelligent transformation of energy systems, and the green transition of energy consumption, China has strengthened the planning and development of a system of energy standards. More than 130 technical committees for standardization in the energy sector have been established, encompassing all areas of the industry.

Raising the efficiency of standardization. To date, China has published about 4,000 national standards and over 11,000 industry standards in the energy sector. It has built an information platform for standardization in the sector and achieved full life-cycle management of energy standards.

Intensifying international cooperation on standardization. China encourages its energy enterprises, research institutions, and social organizations to participate in the formulation of standards by the International Electrotechnical Commission, International Organization for Standardization, International Telecommunication Union, and other organizations. It has published foreign language editions of more than 500 energy standards. As part of Belt and Road Initiative's international cooperation on energy, it engages in international exchanges and cooperation on standardization in fields such as new energy, power transmission and transformation, oil and gas, and nuclear power.

Bolstering policy support. China has taken steps to accommodate the green and low-carbon transition of its energy sector by establishing a system of standards for clean energy. It has introduced a catalogue of industries that support the transition, and has formulated and improved industrial support policies accordingly. Additionally, increasing support from the central budget, local government special bonds, and the National Green Development Fund has been given to clean and low-carbon energy projects. The country is creating a green financial system to guide financial institutions in increasing green loans under market principles in accordance with the rule of law, while also supporting enterprises in issuing green bonds. Furthermore, the country has optimized the approval and registration process for clean and low-carbon energy projects, and streamlined the management procedures for distributed energy investment projects.

Raising the efficacy of oversight and regulation. China has worked to improve its regulation of natural monopolies in the energy sector. The country promotes non-discriminatory and fair access to power grid and oil and gas pipeline facilities by third parties. It has been strengthening regulation of market transactions, pricing mechanisms, and information disclosure. Actions that disrupt market order are swiftly rectified to ensure that market rules are observed. Oversight on the implementation of major plans, policies, and projects has also been strengthened, and renewable energy integration and consumption, the construction and operation of electricity balancing facilities, and the consolidation and upgrading of power grids in rural areas are also subject to better regulation. New methods of oversight and regulation in the energy sector have been adopted, as a new credit-based regulation mechanism has been established and the internet-based model has been widely promoted. An electricity safety oversight and regulation framework covering risk control of large power grids, power emergency response, dam safety, and cybersecurity risk control have been established and improved to ensure the safe and stable operation of power systems and a reliable supply of electricity.

3. Reinforcing the Rule of Law in Energy Transition

China ensures sound lawmaking, strict law enforcement, and impartial administration of justice. It applies the rule of law in consolidating the foundations of the energy sector, stabilizing public expectations, and delivering long-term benefits. The goal is to reinforce the rule of law in energy governance.

Developing a complete legal system. China has established a comprehensive legal framework to support its energy transition. This legal framework mainly comprises the Energy Conservation Law and the Renewable Energy Law, supplemented by the Cleaner Production Promotion Law, the Circular Economy Promotion Law, the Interim Regulations on the Administration of Carbon Emissions Trading, and others. China is also working to establish an eco-environmental code, and to accelerate the formulation of an energy law. There are also plans to revise the Renewable Energy Law and the Electric Power Law. These efforts aim to better promote green production and consumption, and to strengthen incentives and constraints that encourage energy conservation, non-fossil fuel development, renewable energy prioritization, and green energy use.Advancing law-based government administration. China has made further efforts to improve its law-based government administration. The country ensures that the rule of law is integrated throughout the formulation, implementation, supervision and management of its energy strategy and related plans, policies and standards. It has applied a system for disclosing information on administrative law enforcement, a recording system for the whole process of law enforcement, and a legal review system for major law enforcement decisions. It has established a system of benchmarks for administrative discretion to promote strict, procedure-based, impartial, and non-abusive law enforcement. Additionally, China is moving forward with the reform of its administrative review system to improve the procedures for accepting administrative review applications, rules on evidence, and review mechanisms, to protect the lawful rights and interests of enterprises and citizens in energy production and consumption. The country is also carrying out in-depth legal awareness activities in the energy sector and has implemented a responsibility program in which law enforcement departments are responsible for raising public awareness of the law to ensure that the entire society fulfills its obligations of green consumption.

Improving judicial services. China has made all-round efforts to improve judicial services to support high-quality development of the energy sector and to achieve its peak carbon and carbon neutrality goals through impartial administration of justice. The Supreme People's Court has established an Environment and Resources Division to handle cases related to the rule of law in the eco-environmental field, and nationwide there are 2,800 special institutions and organizations where such lawsuit cases are heard. The authorities have published judicial interpretations and guidelines to provide clear guidance for courts in applying the law and adjudicating cases related to energy transition.

VI. Contributing to a Global Community of Shared Future

Maintaining energy security and addressing climate change are common challenges the world faces, and accelerating the development of green and low-carbon energy is a common opportunity for the world. By advancing its own energy transition, China is actively contributing to the global energy transition. Through its commitment to the principle of planning together, building together, and benefiting together, China is working with other countries to promote sustainable global energy development and build a global energy governance system based on equity, justice, balance and inclusiveness.1. Providing New Drivers for Global Green Development

China has actively promoted green development by transforming its own development models and engaging in extensive energy cooperation worldwide. Through its efforts, China has provided new drivers for global green development.

China's green energy development has become an engine for global energy transition. Since 2013, China has been responsible for over 40 percent of the annual additions to global renewable energy capacity. In 2023, the newly installed capacity in China accounted for more than half of the world's total. According to the Renewables 2023 released by the International Energy Agency (IEA), China is a front-runner in the global renewable energy sector and a major driving force behind the world's rapid expansion of renewable energy capacity. From 2014 to 2023, the global share of non-fossil fuels in energy consumption rose from 13.6 percent to 18.5 percent, with China contributing 45.2 percent to this increase.China's new energy industry provides green power for the world. Through sustained technological innovation, a sound system of industrial and supply chains, sufficient market competition, and the advantages of a super-scale market, China's new energy industry has developed rapidly. This has enriched global supply, eased global inflationary pressures, and contributed to coordinated international efforts to combat climate change and improve people's lives. China-made PV modules and wind power equipment have enabled the widespread economic use of renewable energy in an increasing number of countries. According to a report from the International Renewable Energy Agency (IRENA), over the past decade the average cost per kilowatt-hour of global wind power projects has decreased by more than 60 percent, and PV power projects by more than 80 percent. The reductions are largely attributable to China's efforts.China's further opening up creates new opportunities for deeper international cooperation on clean energy. China has been building a world-class business environment that is market-oriented, law-based and internationalized, promoting energy trade and investment liberalization and facilitation, and providing opportunities for foreign-funded enterprises to share the dividends of the country's energy transition. It has implemented a foreign investment management system based on pre-entry national treatment and a negative list, and removed restrictions on foreign investment in all energy industries except nuclear power plants. Additionally, China has introduced a catalogue of encouraged industries for foreign investment and stepped up policy support for foreign investment in clean energy. Multinational companies such as GE, BP, and Siemens are steadily expanding their investment in China's energy sector, and many foreign investment projects are well underway across the country, including EDF's offshore wind power project, Tesla's electric vehicle project in Shanghai, and LG Energy Solution's battery project in Nanjing.2. Promoting Belt and Road Cooperation in Green Energy

Under the framework of the Belt and Road Initiative, China follows the principle of planning together, building together, and benefiting together in energy cooperation. It is committed to open, green and clean cooperation that pursues high-standard, people-centered, and sustainable development. It works together with partner countries to deepen the energy transition, advance green cooperation in the energy sector, and achieve sustainable development.Advancing green energy cooperation among Belt and Road countries. China has issued a number of policy documents directed at expanding its cooperation with Belt and Road countries in the field of green energy, including the Guidelines on Jointly Promoting Green Development of the Belt and Road. In 2021, China pledged to stop building new coal-fired power plants overseas, and began to focus on green and low-carbon energy projects in its energy cooperation with partner countries. Today, China is collaborating with over 100 countries and regions on green energy projects and has launched a significant number of signature energy projects and "small yet smart" people-centered programs that effectively solve accessibility and affordability problems of electricity supply in those countries and regions, and provide them with clean, safe and reliable energy supply solutions.Panel 15 Outstanding Examples of Green Energy Cooperation Among Belt and Road Countries

Pakistan's Karot Hydropower Station is a priority project for energy cooperation under the China-Pakistan Economic Corridor. It is built and operated by Chinese enterprises. With a total installed capacity of 720 MW, it generates an annual average of 3,200 GWh of clean electricity, meeting the power demand of over 5 million people.Ethiopia's Adama Wind Farm is the first wind power project in Ethiopia and the first intergovernmental new energy cooperation project between China and Africa. Using concessional loans from the Chinese government, it was built by Chinese enterprises. With a total installed capacity of 204 MW, it generates an annual average of 630 GWh of clean electricity, substantially improving local power supply.UAE's AI Dhafra Solar PV Plant is the world's largest single-site solar power plant. It was built by a Chinese contractor. With a total installed capacity of 2,100 MW, it can meet the electricity needs of about 200,000 homes in the UAE, and has helped to increase the share of clean energy in the UAE to more than 13 percent.Argentina's Cauchari Solar PV Park is the highest solar power plant in South America with the largest installed capacity. It was built by a Chinese enterprise. With a total installed capacity of 315 MW, it generates about 650 GWh of electricity annually, providing clean energy for 250,000 homes and helping to realize local self-sufficiency in electricity.

Jointly building platforms for high-level energy cooperation. Initiated by China, the Belt and Road Energy Partnership includes 33 member countries from across the world. Within this partnership, six major regional energy cooperation platforms have been formed – the China-ASEAN platform, the China-League of Arab States platform, the China-African Union platform, the China-Central and Eastern Europe platform, the China-Central Asia platform, and the APEC Sustainable Energy Center. A mechanism has been established for regular meetings between the energy ministers of the Shanghai Cooperation Organization member states. Focusing on energy security, energy transition, energy access, and sustainable energy development, China contributes its solutions to the reform of global energy governance.3. Jointly Promoting Global Sustainable Energy Development

In recent years, the international situation has become increasingly complex, with various forms of green barriers on the rise. This has made it more challenging to keep global energy industrial and supply chains stable and maintain energy security in an open environment. In response to these new challenges, China is prepared to fulfill its responsibility as a major developing country by working alongside other countries to improve the industrial and supply chains of clean energy, share knowledge and experience, advance the transition to green and low-carbon energy, and contribute to global sustainable energy development and a global community of shared future.

– Expanding pragmatic cooperation on energy transition. China upholds open and mutually beneficial cooperation and promotes the fruition of the Global Development Initiative. It is committed to improving bilateral and multilateral cooperation mechanisms in the energy sector, strengthening the exchange of policy ideas and best practices in energy transition, and advancing cooperation and capacity building on green and low-carbon technologies, in an effort to build a beautiful world with green energy. China opposes overstretching the concept of national security and imposing baseless restrictions on normal international development cooperation. It is ready to work with the international community to explore new types of energy across more fields and create a future of sustainable energy for the benefit of humanity.– Keeping global energy industrial and supply chains open and stable. As a firm advocate of true multilateralism, China opposes all forms of unilateralism and protectionism. It rejects all forms of decoupling, any severing of industrial and supply chains, and the "small yard and high fence" approach, as it endeavors to keep global energy industrial and supply chains open and stable. China is ready to work with other countries to strengthen dialogue and communication, promote trade and investment liberalization and facilitation, and build secure, stable and efficient global energy industrial and supply chains that are open, inclusive, and mutually beneficial. Major countries should focus more on the future of the earth and humanity and act in a responsible manner by ensuring global energy security, promoting green development, and maintaining market order, thus fulfilling the responsibilities commensurate with their status.– Improving global energy access. Poverty eradication is the common responsibility of the international community, and ensuring the supply of electricity and other energy sources is one of the basic conditions allowing underdeveloped areas to eliminate poverty and narrow the gap. China has successfully eradicated extreme poverty in the largest and most challenging battle against poverty that benefits the greatest number of people in human history. It is prepared to work with other countries to implement the UN 2030 Agenda for Sustainable Development, aiming to help less developed countries and regions in strengthening their energy supply capacities while supporting their efforts to promote clean and renewable energy. Thus, they will be able to achieve the goal of ensuring access to affordable, reliable, sustainable and modern energy for all.– Tackling challenges posed by global climate change. The earth is the home of all humanity, and climate change is a common challenge facing all countries. China has implemented a proactive national strategy on climate change, defined its peak carbon and carbon neutrality goals, and contributed to the global climate change response with concrete actions. It is ready to work with other countries to uphold the principle of equity and common but differentiated responsibilities and respective capabilities, while working towards the targets outlined by the Paris Agreement, as it helps to build a fair and rational global climate governance system directed towards cooperation and mutual benefit. Developed countries should provide funding, technology, and capacity-building support for renewable energy deployment in developing countries, and help address the dual challenges of energy supply security and the green and low-carbon energy transition, as all nations move together towards a greener, more inclusive, and sustainable future.

Conclusion

Over the past decade, China has achieved remarkable success in its resolute transition to green and low-carbon energy. However, energy transition is a systemic socio-economic transformation of broad and profound significance and a long-term strategic initiative that requires steady progress and sustained efforts, guided by the new energy security strategy.

China has formulated a medium- and long-term development plan. By 2035, it aims to have achieved basic socialist modernization, to have in place eco-friendly ways to produce and consume energy, to expedite the transition to non-fossil fuels as its main energy sources, to have established a new power system to support this transition, and to have largely reached the goal of building a beautiful China. By the middle of the century, China will have become a great modern socialist country with a clean, low-carbon, safe, and efficient energy system. Its energy efficiency will be among the world's highest, with non-fossil fuels as its main energy sources, as the country looks to achieve carbon neutrality by 2060.The earth is our shared home, and a clean and beautiful world with bluer skies, greener mountains, and clearer waters is the common aspiration of everyone in this global village. To address the challenge of climate change and achieve the sustainable use of energy, the world must accelerate the pace of the global energy transition. The green revolution concerns the wellbeing of everyone and future generations. All countries should work together to protect our planet for the sake of human survival.

China is committed to respecting nature, following its ways, and protecting it, and stands for the vision of building a global community of shared future. It continues to accelerate its green and low-carbon energy development, and promote a global energy governance system characterized by equity, justice, balance and inclusiveness. China will work with other members of the international community to plan energy cooperation together, address global climate change, promote harmony between humanity and nature, and create a clean and beautiful world for us all.