China's 15th Five-Year Energy Plan: Security Shifts From Fossil Imports to New-Energy Tech
A policy reading of the 2026–2030 blueprint for a "new-type energy system," released June 26
On June 26, China released the Plan for Building a New-Type Energy System during the 15th Five-Year Plan Period. As a major sector-specific deployment within the national 15th Five-Year Plan framework on the energy front, it sets the direction for energy development from 2026 to 2030, making it essential reading for anyone hoping to understand China’s energy strategy. As I am not an expert in new energy technology myself, I will read it from the perspective of the policy text and the information shared at the press conference. Below are some of my highlights.
More binding targets for new energy development
In the 14th Five-Year Plan for a Modern Energy System, there were no binding indicators governing new energy development; and in the 14th Five-Year Plan for Renewable Energy Development, there were only five anticipatory (non-binding) indicators concerning the development and utilization of renewable energy—namely, the total renewable electricity consumption responsibility weighting, the non-hydro renewable electricity consumption responsibility weighting, renewable power generation, total renewable energy utilization, and non-electric renewable energy utilization. The 15th Five-Year Plan for Building a New-Type Energy System, by contrast, adds three binding indicators: comprehensive energy production capacity, raising the share of non-fossil energy in total consumption to 25% by 2030, and reducing carbon emissions per unit of power generation by more than 10%.
The shift in wording from “modern energy system” to “new-type energy system” reflects a change in policy thinking
In the 15th Five-Year Plan, the phrasing is “accelerating the construction of a new-type energy system,”加快建设新型能源体系 whereas in the text of the 14th Five-Year Plan the formulation was “accelerating the building of a modern energy system and promoting high-quality energy development.”加快构建现代能源体系、推动能源高质量发展 It is worth noting that the concept of a “new-type energy system” first appeared in the report of the 20th National Congress of the Communist Party of China in October 2022, in the section on promoting green development:
Advance the energy revolution in greater depth, promote the clean and efficient use of coal, intensify the exploration, development, and expansion of oil and gas reserves and production, accelerate the planning and construction of a new-type energy system, coordinate hydropower development with ecological protection, develop nuclear power in an active, safe, and orderly manner, and strengthen the systems for energy production, supply, storage, and marketing to ensure energy security.
深入推进能源革命，加强煤炭清洁高效利用，加大油气资源勘探开发和增储上产力度，加快规划建设新型能源体系，统筹水电开发和生态保护，积极安全有序发展核电，加强能源产供储销体系建设，确保能源安全。
The related concept of a “new-type power system,” meanwhile, was put forward even earlier, at the Ninth Meeting of the Central Financial and Economic Affairs Commission in March 2021:
We must build a clean, low-carbon, safe, and efficient energy system, control the total volume of fossil energy, work to improve utilization efficiency, implement a renewable energy substitution initiative, deepen reform of the electricity system, and build a new-type power system with new energy as the mainstay.
要构建清洁低碳安全高效的能源体系，控制化石能源总量，着力提高利用效能，实施可再生能源替代行动，深化电力体制改革，构建以新能源为主体的新型电力系统。
To see why the shift happened, it helps to look at how each plan frames the energy system in the first place. Early in the 14th Five-Year Plan—Chapter 1, Article 2—the text surveys the global energy landscape and then declares that China’s energy security has entered a critical phase. Tellingly, the examples it reaches for first are all from the traditional side of the ledger, with oil and gas front and center; only afterward does it mention that the low-carbon transition has entered an important window. In Chinese policy documents, the order in which things appear reflects a certain hierarchy of priorities. Read that way, the plan’s real emphasis was still on securing energy through diversified oil and gas imports, building up petroleum reserves, and the like.
By the time we reach the 15th Five-Year Plan for Building a New-Type Energy System, however, the very first of its main objectives, stated at the outset, declares that “by 2030, a clean, low-carbon, safe, and efficient new-type energy system will be initially established.” It then goes on to state:
Coal and oil consumption will peak; the share of non-fossil energy in total consumption will reach 25%; wind and solar will account for more than 50% of installed power capacity, becoming the mainstay of installed capacity; and non-fossil energy will reach 50% of power generation, becoming the mainstay of electricity output.
煤炭和石油消费达峰，非化石能源消费比重达到 25%，风电和太阳能发电装机比重超过50%、成为电力装机主体，非化石能源发电量比重达到 50%、成为电量主体
As we can see, the change in the order of these formulations reflects how the focus of policy on safeguarding energy security has already shifted toward relying on the non-fossil energy domain. If that seems like reading too much into word order, the project lists make the same point more concretely. The 14th Five-Year Plan’s energy-security priorities were domestic oil and gas exploration, gas storage, LNG import terminals, and grid security. The 15th Five-Year Plan’s land on oil and gas reserves, pipeline buildout, and “high-standard” coal supply bases. In other words, the fossil-fuel measures have visibly contracted into a storage-and-backstop role.
It is worth noting that at the press conference, when Wan Jinsong万劲松, Deputy Director of the National Energy Administration, responded to a question about increased investment in coal-to-chemicals, he affirmed the role of coal in regulating power generation and maintaining electricity stability, yet placed particular emphasis on its positioning as “small in scale but stable.” Given that coal-fired power had long been China’s single largest source of electricity, this statement, in a sense, demotes coal from its status as a mainstay energy source to a supporting role for new energy—and it likewise reflects how China’s thinking on safeguarding energy security has shifted from a reliance on diversified imports of traditional fossil fuels toward a reliance on its technological advantages in the new energy domain.
From “West-to-East Power Transmission” and “West-to-East Gas Transmission” to “Western Energy for Western Use”
At the press conference, Wan Jinsong put forward a new formulation ”Western Energy for Western Use.” (西能西用) It offers a geographic dimension for understanding the new-type energy system. China’s resources are relatively unevenly distributed across regions, with coal, oil, and gas resources concentrated mainly in the west, while energy consumption comes chiefly from the industrial zones along the eastern seaboard. The government’s previous approach centered on one-directional flows that ship resources from west to east, such as West-to-East Gas Transmission (西气东输), West-to-East Power Transmission (西电东输), and North-to-South Coal Transport(北煤南运).
But as AI drives ever-growing demand for electricity, it has made computing power a uniquely suited resource for western regions, allowing electricity generated by wind, solar, and other new energy sources to be converted into computing power locally.
By Wan Jinsong’s account, the west will henceforth no longer simply export primary energy such as electricity, coal, and natural gas; instead, it will “guide energy-intensive industries to relocate to the west in an orderly fashion, and promote the coordinated layout of advanced manufacturing, computing power, hydrogen energy, and other industries alongside the development of clean energy bases,” converting resources into products and tokens on the spot, and keeping the added value local.
English version I made with the help of AI:
https://rattle-garment-31c.notion.site/The-15th-Five-Year-Plan-for-the-Development-of-a-New-Type-Energy-System-38f41f93c20f80ce94dff81b0e2ade17?source=copy_link
Below is the transcript of the press release I made with the help of AI
The State Council Information Office Holds a Press Conference on the Planning for Accelerating the Development of a New-Type Energy System during the 15th Five-Year Plan Period
Jia Huili, Deputy Director-General of the Press Bureau and Spokesperson, State Council Information Office (SCIO):
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office. Today we continue our series of themed press conferences under “Getting Off to a Good Start in the 15th Five-Year Plan.” We have invited Mr. Wang Hongzhi, member of the Leading Party Members Group of the National Development and Reform Commission (NDRC) and Director of the National Energy Administration (NEA), to brief you on the planning related to accelerating the development of a new-type energy system during the 15th Five-Year Plan period, and to answer your questions. Also attending today’s conference are Mr. Wan Jinsong, NEA Spokesperson and Deputy Director; Mr. Ren Yuzhi, NEA Spokesperson and Director-General of the Development Planning Department; and Mr. Du Zhongming, Director-General of the Electric Power Department.
Now, let us first invite Mr. Wang Hongzhi to give his briefing.
Wang Hongzhi, Member of the Leading Party Members Group of the NDRC and Director of the NEA:
Friends from the media, ladies and gentlemen, good morning! Thank you for your long-standing care and support for energy work. With the approval of the State Council, the Plan for Building a New-Type Energy System during the 15th Five-Year Plan Period (hereinafter “the Plan”) was recently released.
The overall goal of the Plan is that, by 2030, a clean, low-carbon, safe, and efficient new-type energy system will be initially established, providing strong support for building China into an energy power. After five years of development, China’s energy system will exhibit four characteristics:
First, greater security and resilience. Comprehensive energy production capacity will reach 5.8 billion tons of standard coal equivalent, with self-sufficiency capacity holding steady with a slight upward trend, and energy imports becoming more diversified and controllable.
Second, a more optimized energy mix. At present, China’s installed power generation capacity has already surpassed 4 billion kilowatts, and is expected to reach 5.4 billion kilowatts by 2030. Of this, new energy will account for more than 50% of installed capacity, becoming the main body of installed power capacity; non-fossil energy will account for 50% of power generation, becoming the main source of electricity; and coal and oil consumption will peak.
Third, a renewed system configuration. We will accelerate the construction of a new-type energy infrastructure system that is strong and resilient, green and low-carbon, integrated and converged, and intelligent and efficient, and initially build a new-type power system.
Fourth, stronger innovation vitality. The modernization level of the industrial chain will be significantly enhanced, placing China among the world’s leading nations in energy science and technology innovation; the market and pricing mechanisms suited to the new-type energy system will be more robust, and a unified national electricity market will be essentially established.
To achieve these goals, our task arrangements emphasize “three strengthenings.”
Strengthening the coordinated optimization of spatial layout. Adhering to the principle of “one chessboard for the whole country,” we will coordinate and optimize the layout and flows of energy. The focus is: targeting the large-scale development of non-fossil energy by building “four bases + distributed” five major growth sectors to support raising the share of non-fossil energy consumption to 25%; targeting the consolidation of the foundation for fossil energy production by clearly designating the Ordos Basin and other areas as strategic oil and gas security bases, and optimizing the development of five major coal production bases; and targeting the optimization of trunk corridor layouts by strengthening the construction of energy transmission “arteries” such as West-to-East Power Transmission and West-to-East Gas Transmission.
Strengthening strategic coordination in system building. Building a new-type energy system is a systematic undertaking, for which we have planned “six major systems” as strategic tasks. We will build a strong and resilient energy security guarantee system, enhancing capacities for strategic energy security, transition security, and emergency security. We will build an advanced and well-adapted new-type energy infrastructure system to support energy transition and development. We will build a green, low-carbon energy consumption system, advancing energy conservation and carbon reduction in key sectors and deeply implementing clean energy substitution. At the same time, we will build a self-reliant and self-strengthening energy science and technology innovation system, a coordinated and efficient modern energy governance system, and a multidimensional and diversified energy international cooperation system.
Strengthening support driven by engineering projects. On one hand, we will implement a batch of major strategic projects. We will advance high-quality development of major projects such as the Lower Yarlung (Yaxia) Hydropower Project, build new energy bases in deserts, the Gobi, and arid regions (”shage huang”), water-wind-solar integrated bases, and offshore wind power bases, and actively, safely, and orderly advance coastal nuclear power construction. We will coordinate the construction of infrastructure such as the “national oil and gas network” and new-type power grids. On the other hand, we will actively develop new-industry and new-business-model projects. We will upgrade the quality of the electric vehicle charging infrastructure network, lay out and build wind-solar-hydrogen-ammonia-methanol integrated bases, build concentrated solar power (CSP) projects, advance direct green power connection and smart microgrid development, and complete a batch of zero-carbon industrial parks. It is projected that investment in key energy projects and new business models during the 15th Five-Year Plan period will maintain steady growth, with a total scale exceeding 20 trillion yuan.
In response to the internal and external situation of energy development, and centered on security guarantees, low-carbon transition, and innovation-driven development, we have also planned “three priorities.”
First, prioritizing the strengthening of oil and gas security. We will strengthen domestic production and vigorously advance oil and gas exploration and development. We will strengthen international cooperation and consolidate and expand diversified oil and gas imports. We will increase efforts in new energy development, strengthen the strategic deployment of various alternative fuels, and advance the large-scale application of new-energy heavy-duty trucks and ships.
Second, prioritizing the construction of the new-type power grid. The new-type power grid is one of the “six networks” that society pays close attention to. We will optimize the layout of inter-provincial and inter-regional transmission corridors, strengthen coordinated construction and operation of grids at all levels, and build a new-type power grid that is safe and reliable, green and low-carbon, strong and resilient, and intelligent and flexible—coordinating the main grid, distribution grid, and microgrids.
Third, prioritizing the mutual empowerment of AI and energy. We will deeply implement the “AI+” energy initiative and accelerate the digital and intelligent transformation of the energy system. At the same time, we will strengthen the coordinated development of computing and power, coordinating energy resource allocation with computing infrastructure construction, promoting “stronger computing through power, and better power through computing.”
Friends from the media, ladies and gentlemen, the blueprint is set, and the future is promising! I am confident that, after five years of sustained effort, a new-type energy system with greater security and resilience, a more optimized energy mix, a renewed system configuration, and stronger innovation vitality will take shape more quickly, laying a solid foundation for building China into an energy power!
That concludes my briefing. My colleagues and I will now continue to exchange views with you in detail. Thank you!
Reporter, Hong Kong Ta Kung Wen Wei Media Group:
Currently, international geopolitical conflicts continue to disrupt oil and gas supply chains, while the rapidly rising share of wind and solar power domestically brings risks of system fluctuations. During the 15th Five-Year Plan period, what targeted measures will China take to further strengthen its energy security capacity and comprehensively enhance energy self-sufficiency and system risk resilience? Thank you.
Wang Hongzhi:
Thank you for your question. I will answer this one.
Energy supply and security bear on the national economy and people’s livelihoods. Since the 18th Party Congress, General Secretary Xi Jinping has put forward the new energy security strategy of “four revolutions and one cooperation,” emphasizing that we must firmly hold the energy rice bowl in our own hands. In recent years, under the strong leadership of the Party Central Committee and the State Council, the NDRC and NEA have deeply implemented the new energy security strategy, working simultaneously on energy security and green, low-carbon transition, and effectively responding to various domestic and international risks and challenges. In particular, since late February this year, the global energy market has experienced severe turbulence, with many countries experiencing varying degrees of energy shortages, surging oil prices, and tight supplies. Yet China’s energy system withstood the shock, maintaining overall balance between supply and demand and overall price stability, demonstrating tremendous resilience. International media commented that China not only successfully resisted the external shock but also made important contributions to stabilizing the global energy market.
The 15th Five-Year Plan period is a critical phase for laying a solid foundation and making full efforts toward basically achieving socialist modernization, during which energy demand will continue to grow. We will always place energy security in the foremost position, adhere to bottom-line thinking and systems thinking, and focus on three areas of work.
First, doing well in the “development” and “reserves” of fossil energy. Coal is our greatest source of confidence for stable energy supply, and we must build coal bases based on this national condition. For oil and gas, we will increase domestic exploration and development efforts, stabilize oil output, and increase natural gas supply. At the same time, we will strengthen energy reserves, improve the oil and gas reserve system, strengthen coal-to-oil/gas production capacity and technology reserves, and improve coal production capacity reserves—only then can we remain “as steady as a mountain through wind and rain.”
Second, significantly increasing the supply of non-fossil energy. This is both a requirement of the transition and a way to expand new space for energy security. During the 14th Five-Year Plan period, 45% of the increment in China’s energy consumption was already met by non-fossil energy, and this proportion will rise further during the 15th Five-Year Plan period. We will adhere to the simultaneous development of multiple energy sources such as wind, solar, hydro, and nuclear, build a new-type power system, promote large-scale and high-proportion development and utilization of new energy, and accelerate the supply of newly added electricity consumption from clean energy.
Third, expanding the circle of energy cooperation partners. As everyone knows, a large proportion of China’s oil and gas currently comes from the international market. We will adhere to the diversification of energy imports, strengthen mutually beneficial cooperation with key energy and resource countries, work with other nations to safeguard energy transport channels, and ensure energy security under open conditions.
The Plan makes specific arrangements for each of these priorities, with the aim of building a strong and resilient energy security guarantee system.
Reporter, Upstream News:
The 15th Five-Year Plan period is the decisive period for achieving the carbon peaking goal, and the energy sector is the main battlefield for carbon peaking. What indicators has the Plan for Building a New-Type Energy System during the 15th Five-Year Plan Period set in areas such as raising the share of non-fossil energy supply, advancing the orderly substitution of fossil energy, and energy conservation and carbon reduction? What specific measures will be taken to ensure the carbon peaking goal is met on schedule? Thank you.
Ren Yuzhi, NEA Spokesperson and Director-General of the Development Planning Department:
Thank you for your question. Achieving the carbon peaking goal on schedule is China’s commitment to the international community. Currently, the energy sector accounts for more than 80% of carbon dioxide emissions—indeed the main battlefield for emissions reduction that you mentioned. During the 15th Five-Year Plan period, we will accelerate the low-carbon transition with greater intensity and more concrete measures, making green the defining backdrop of high-quality development.
In terms of development goals, we have set five binding indicators around transition and decarbonization. Three of these—the share of non-fossil energy consumption, the share of non-fossil energy in power generation, and the share of electricity in final energy consumption—are carried over from the 14th Five-Year Plan, and we have set higher targets for them. At the same time, we have established two new indicators. One is the carbon emissions per unit of electricity generated, with a 15th Five-Year Plan target of reducing it by more than 10%; this is a comprehensive indicator reflecting the green transition and efficiency improvement of China’s power system. The other is the energy savings in key industries; through energy conservation and carbon reduction retrofits and technological innovation, key industries will save more than 150 million tons of standard coal equivalent during the 15th Five-Year Plan period.
We have the roadmap; the key is implementation. In terms of specific measures, we will exert efforts in the same direction on both the energy supply side and the consumption side to reduce carbon collaboratively. On the supply side, we will work on both increment and stock. Regarding increment, the main task is to scale up clean energy supply. We will vigorously promote large-scale development of non-fossil energy; by the end of the 15th Five-Year Plan period, installed non-fossil energy capacity is expected to exceed 3.5 billion kilowatts, an increase of nearly 50% over the end of the 14th Five-Year Plan period. Of this, wind and solar power capacity will reach more than 2.8 billion kilowatts, laying a solid foundation for achieving the 2035 nationally determined contribution (NDC) targets. Regarding stock, the main task is the transition of traditional energy. We will strengthen green coal mining and clean production and utilization, promote green, low-carbon development of oil and gas extraction and refining, strengthen the integration of coal, oil and gas, and coal power with new energy, and implement a new generation of coal power retrofits and upgrades.
On the consumption side, we will focus on two aspects: conservation and substitution. First, doing well in energy conservation and efficient utilization. We will strengthen the application of energy-saving and efficient production processes and technologies in the industrial sector, promote energy conservation and carbon reduction retrofits in traditional industries as well as energy efficiency improvements in new high-energy-consuming industries such as computing power, strengthen building energy efficiency management, and deepen energy conservation and carbon reduction retrofits in public institutions. Here, I also ask our friends in the media to help promote energy conservation—every kilowatt-hour of electricity and every drop of oil comes hard-won. Second, doing well in clean substitution of energy use. We will implement a system of minimum-share targets for renewable energy consumption, accelerate the green and low-carbon transition of heating systems, promote the establishment of around 100 national-level zero-carbon industrial parks, advance building-integrated photovoltaics (BIPV), promote the large-scale application of new-energy heavy-duty trucks, and build low-carbon and zero-carbon transport corridors. At the same time, we will cultivate and expand the green certificate and green power markets, strengthen the accounting of non-fossil energy power consumption, accelerate the improvement of policy mechanisms, unleash the energy conservation and carbon reduction potential in production and daily life, and continuously raise the level of green, low-carbon energy consumption. Thank you!
Reporter, China Economic Information Service (Xinhua):
During the 14th Five-Year Plan period, private enterprises made important contributions in the energy sector. During the 15th Five-Year Plan period, which specific areas will we focus on, and what measures will we take to further expand private investment and stimulate the vitality of private enterprises? Thank you.
Wan Jinsong, NEA Spokesperson and Deputy Director:
Thank you for your question. Private enterprises have strong innovation vitality and have always been a vital force in promoting high-quality energy development. At present, China’s green, low-carbon energy transition is accelerating, and new models and new business forms are emerging rapidly, providing a new “blue ocean” for the development of private enterprises. During the 15th Five-Year Plan period, we will adhere to open development and service-oriented investment promotion, and intensify support for private enterprises participating in building the new-type energy system.
In major energy projects, we will expand the investment space for private enterprises. For major projects with certain returns—such as nuclear power, hydropower, and oil and gas storage and transport facilities—we will assess the feasibility of private enterprise participation case by case. Currently, private enterprises have participated in 12 nuclear power projects, with the highest equity stake reaching 20%. During the 15th Five-Year Plan period, we will continue to open the door wide for energy projects, issue guidelines for private enterprise participation in investment in large and medium-sized hydropower and other projects, so that enterprises have direction for their investments and assurance of returns.
In new models and new business forms, we will support private enterprises in fully demonstrating their capabilities. Among the 105 direct green power connection projects already approved, private enterprise projects account for half. The multi-user direct green power connection policy has now been issued, further stimulating the enthusiasm of private enterprises to invest in zero-carbon parks, industrial green microgrids, and integrated energy services. We will further improve the electricity market and pricing mechanisms, and support private enterprises in investing in virtual power plants, charging facilities, new-type energy storage, and other projects.
In optimizing the business environment, we will provide better services for private enterprises. We will concentrate on rectifying chaos in bidding and tendering, disorderly competition in the photovoltaic industry, and compulsory industrial bundling requirements, and continuously advance the fair opening of infrastructure such as power grids and oil and gas pipeline networks to private enterprises. We will simplify project approval processes, implement “one-network handling, one-window acceptance,” improve the level of “access to electricity” services, and make it easier for enterprises to get things done with fewer trips. We will regularly conduct government-enterprise dialogues, evaluate policy effects, and respond to development demands, serving as a trusted partner of enterprises.
During the 15th Five-Year Plan period, we will also successively introduce new reform and innovation measures, giving private enterprises greater investment space, more opportunities, and stronger confidence in the energy sector. Thank you!
Reporter, Haibao News:
In recent years, China’s total electricity consumption has repeatedly hit new highs. Through the joint efforts of all parties, energy and power supply has remained stable and orderly. Affected by factors such as climate change and the rising share of new energy capacity, how will electricity supply security be ensured during the 15th Five-Year Plan period? And what is the state of preparation for meeting peak energy demand this summer? Thank you.
Du Zhongming, Director-General of the Electric Power Department, NEA:
Thank you for your question. Last year, both China’s total electricity consumption and peak load hit new highs, and we adopted proactive and effective measures so that power supply remained stable and orderly throughout. During the 15th Five-Year Plan period, with the surge in computing-power electricity use, the rapidly increasing demand from EV charging facilities, and the rigid growth in electricity use from other industries and residential life, we project that the average annual increment in national electricity consumption will reach around 600 billion kilowatt-hours—equivalent to adding the electricity consumption of a medium-sized economy every year.
To this end, we will exert coordinated efforts across all links of generation, grid, load, and storage, adopting more forceful and effective measures. On the generation side, we will accelerate the formation of a green, low-carbon supply structure while continuing to leverage the backstop role of gas power and coal power. On the grid side, we will accelerate the construction of the new-type power grid to enhance power mutual-support capacity and security resilience. On the load side, we will vigorously develop virtual power plants to stimulate coordinated response capacity on the demand side. On the storage side, we will effectively leverage the role of new-type energy storage to enhance peak-shaving capacity during peak demand periods. In short, under the strong leadership of the Party Central Committee and the State Council, and with the strong coordination of relevant departments, the NDRC and NEA will make every effort to ensure supply, and we are confident and capable of guaranteeing national electricity supply during the 15th Five-Year Plan period.
The work of ensuring supply during this summer’s peak is now in full swing. Our assessment is that the national balance between electricity supply and demand will be generally maintained, though some provinces in the East China, Central China (including Southwest), and Southern regions face tight supply. Through means such as inter-provincial and inter-regional power mutual support, electricity supply in these areas can be effectively guaranteed. Going forward, we will conduct daily rolling assessments of the national electricity supply-demand situation, strengthen monitoring and early warning of hydropower station inflows and power plant coal and gas reserves, ensure that supply-guaranteeing power sources are put into operation wherever possible, consolidate the backstop role of coal power, and ensure that gas power can “step up and generate steadily” during peak periods. At the same time, we will leverage the role of the large grid, large corridors, and large market, fully utilizing the transmission capacity of transmission corridors and surplus resources across regions to conduct staggered, off-peak inter-provincial market-based mutual-support trading. For areas with tight supply, we will formulate “one province, one policy” work measures to respond promptly and effectively to potential supply shortages in individual provinces under extreme weather and other circumstances, resolutely holding the bottom line of large-grid security and people’s livelihood electricity use. Thank you!
Reporter, Bloomberg:
Since 2021, China has accelerated the approval of new coal-fired power plants. We have also seen a significant increase in investment in coal chemical projects. What are the drivers of this trend? Will this expansion continue to the end of this Five-Year Plan period? And how should the balance between energy security and climate goals be struck? Thank you.
Wan Jinsong:
Thank you for your question. Globally, the utilization of fossil energy has two universal characteristics. The first characteristic is that thermal power remains the cornerstone for ensuring the safe and stable operation of power systems in various countries. Countries like those in Europe and the US rely mainly on gas-fired power for support and regulation, while China, owing to its own energy endowment, relies mainly on coal power for regulation. Currently, China’s thermal power accounts for about 40% of installed capacity, which is below the world average. In recent years, China’s new energy development has achieved world-renowned results, contributing more than half of the world’s newly added wind and solar power capacity—and behind such rapid development is the flexible regulation capacity provided by thermal power. China has coordinated the transition of traditional energy with the rapid development of new energy, forging a path of high-quality development that is clean, low-carbon, safe, and efficient. Since the start of the 14th Five-Year Plan period, the share of coal power in installed capacity has dropped from 49% to 32%, and its share of power generation has dropped from 61% to 51%, while coal power’s pollutant emission standards are now on par with gas power. During the 15th Five-Year Plan period, to support the rapid development of new energy and ensure energy demand, coal power will continue to play its role.
The second characteristic is that global fossil energy utilization is gradually shifting from fuel to feedstock. In recent years, China has continuously strengthened the clean and efficient utilization of coal, improved the comprehensive utilization efficiency of coal as a chemical feedstock, promoted the high-end, diversified, and low-carbon development of the coal chemical industry, and accelerated the transformation and upgrading of the coal industry.
Regarding energy security and climate goals, I believe you have all seen that, since the 18th Party Congress, China has coordinated the advancement of energy security and low-carbon transition, building the world’s largest renewable energy system while also effectively safeguarding energy security. During the 15th Five-Year Plan period, we will continue to do this work well. First, for non-fossil energy, we will pursue “abundant and excellent”—that is, developing non-fossil energy with greater intensity, accelerating the enhancement of new energy’s safe and reliable substitution capacity, vigorously developing new regulating capabilities such as new-type energy storage, and reducing dependence on fossil energy as much as possible. Second, for fossil energy, we will pursue “minimal and stable”—that is, basing ourselves on safeguarding energy security and scientifically and rationally deploying the development and utilization of fossil energy according to the system’s minimum needs, so as to better support economic and social development with stable energy supply. Thank you!
Reporter, 21st Century Business Herald:
China’s artificial intelligence industry continues to grow in scale and is expected to exceed 10 trillion yuan by the end of the 15th Five-Year Plan period. What are the specific application scenarios of AI in the energy sector? Behind AI development is computing power, and behind computing power is electricity—how will China advance the coordinated layout of computing and power? Thank you.
Wang Hongzhi:
Thank you for your attention. I will answer this question. Currently, AI and energy have entered the fast lane of mutual empowerment. The application scenarios of AI in the energy sector are mainly reflected in three aspects.
In terms of improving quality and efficiency: AI assists in completing complex but repetitive labor such as intelligent inspection and defect identification, improving work efficiency. For example, the “Kunlun” large model in the petroleum industry has improved the computational efficiency of oil and gas exploration and development by more than tenfold, providing more precise and efficient decision-making support for optimizing oilfield development plans.
In terms of solving difficult problems: As high proportions of new energy are integrated on a large scale, power systems become more complex, and AI can effectively solve many problems that traditional methods struggle to address. For example, the “Yudian” (Power Control) large model in the power industry responds in real time to fluctuations in wind and solar output, assisting in generating grid dispatch plans, and can further improve the level of new energy accommodation.
In terms of intelligent operation: The application of AI is gradually leaping from assisted decision-making to autonomous execution. For example, when a fault occurs in the distribution grid, the “Guangming Electric Power” large model can act like a “doctor,” sensing line anomalies in real time, precisely locating fault points, and achieving intelligent repair.
At the same time, the explosive growth of AI has driven a surge in electricity consumption. For example, every 5 seconds of high-definition video generated by AI consumes electricity equivalent to fully charging 10 mobile phones. In response to this explosive growth, we will, in accordance with the requirement of “stronger computing through power, and better power through computing,” coordinate energy resource allocation with computing infrastructure construction and advance computing-power coordination across multiple dimensions.
First, strengthening coordination in planning and layout. In the western region, we will coordinate the layout of national computing hubs with the planning and construction of large new energy bases, and advance the coordinated construction of computing facilities and power systems. In the eastern region, we will promote coordinated planning of distributed computing with distributed power sources, microgrids, and virtual power plants, responding to computing demand locally.
Second, strengthening coordination in the policy system. We will encourage qualified computing facilities to adopt direct green power connections, support computing facilities in participating in green power and green certificate trading, encourage computing facilities to participate in the electricity market as flexible regulating resources, and promote positive interaction between computing facilities and the new-type power system.
Third, strengthening coordination in operational regulation. Based on the electricity-use characteristics and regulation potential of different computing tasks, we will optimize the arrangement of computing loads. For example, for computing tasks requiring high reliability and low latency, we will focus on ensuring stable power supply; for computing tasks with higher latency tolerance, we will guide them to proactively adapt to the grid’s peak-shaving needs. Thank you!
Reporter, China Electric Power News (China Energy Media Group):
The 15th Five-Year Plan proposes that, by 2030, a unified national electricity market will be essentially established. Currently, new energy is entering the grid on a large scale and in high proportions, posing new challenges to the electricity market’s pricing mechanisms and inter-regional mutual support. How will we improve market development going forward to better adapt to these new changes? Thank you!
Ren Yuzhi:
Thank you for your question, and thank you for your concern about the national electricity market. It can be said that, during the 14th Five-Year Plan period, the unified national electricity market system was initially established, achieving multi-tiered and multi-category coordination, with the functions of energy, ancillary services, green power and green certificates, and retail markets complementing each other. Coal power and commercial and industrial users have fully entered the market, and the market has become an important means of allocating electricity resources.
Regarding the “new challenge” you mentioned—that the rapid development of new energy poses to the electricity market—during the 15th Five-Year Plan period, we will anchor on the goal of essentially establishing a unified national electricity market, focusing our efforts on three aspects: “market channels, trading cycles, and governance capacity” to further build up the electricity market.
First, unblocking the market channels for accommodating new energy. Electricity requires real-time balancing, and the market also needs to respond dynamically. New energy generation is unstable, and the electricity market can strengthen regulation to accommodate it, promoting optimal resource allocation. For example, in intra-provincial electricity trading markets, we will push the spot market to fully enter formal operation and improve market categories such as ancillary services and retail, so that the potential of regulating power sources and demand-side resources is fully realized. In inter-provincial and inter-regional electricity trading, medium- and long-term trading provides the “fundamental base” for cross-provincial accommodation of new energy, while inter-provincial spot trading and regional inter-provincial mutual-support trading serve as “adapters” for coping with short-term wind and solar fluctuations. By conducting cross-grid-operating-area trading on a regular basis, we have also achieved real-time trading between the State Grid and China Southern Power Grid, enabling surplus wind and solar power to travel thousands of miles into millions of households, and making fuller and better use of transmission corridor capacity.
Second, optimizing trading cycles adapted to the new-type power grid. We will promote electricity market trading cycles to coordinate in two directions—”longer and shorter”—to more precisely match the generation characteristics of new energy. On the “longer” side, this means extending cycles and stabilizing expectations, encouraging both generators and users to sign multi-year electricity trading contracts and realizing year-round, continuous operation of the medium- and long-term market, so that the green value of new energy can always be seen and locked in. On the “shorter” side, this means shortening cycles and trading flexibly, making good use of short-term markets such as spot and ancillary services to precisely reflect the differing value of electricity in time and space, adapting to the high-frequency, flexible trading needs of new energy, new-type energy storage, virtual power plants, and others, thereby fitting the new-type power grid with a stable “regulator.”
Third, enhancing the governance level of the unified electricity market. Now that the market is built, it must be used well and remain stable. We will strengthen multi-departmental coordinated supervision, building a collaborative management system with multi-party linkage among government competent departments, energy regulatory agencies, trading institutions, and market management committees. We will adhere to measuring everything by one ruler, resolutely break down local protectionism and market barriers, resolutely rectify behaviors such as administrative interference in the market, price collusion, and abuse of market dominance, uphold unified market rules, closely monitor risks throughout the retail market process, and comprehensively improve market governance.
Reporter, The Cover:
The Fourth Plenary Session of the 20th CPC Central Committee made arrangements for “new-type energy infrastructure” for the first time, and the 15th Five-Year Plan proposes intensifying the construction of new-type energy infrastructure. What are the characteristics of new-type energy infrastructure? And how will this work be implemented and advanced?
Wan Jinsong:
Thank you for your question. As we understand it, new-type energy infrastructure is the “skeleton” and “hard support” of the new-type energy system—modern infrastructure that adapts to the energy revolution and serves transition and development. It enables clean energy such as wind, solar, and hydropower to be transmitted out, received, and used well, with distinct characteristics of being strong and resilient, green and low-carbon, integrated and converged, and intelligent and efficient. During the 15th Five-Year Plan period, we will focus on three directions to further accelerate the layout and construction of new-type energy infrastructure.
The first direction is accelerating the layout of energy infrastructure that promotes new energy development. We will optimize development methods, build wind and solar bases in the “Three North” regions and water-wind-solar integrated bases in the Southwest, develop direct green power connections according to local conditions, build low-carbon and zero-carbon oil and gas fields, and promote integrated and converged development of new energy. At the same time, we will enhance the integration and accommodation capacity of new energy, accelerate the building of a new-type power grid that is safe and reliable, green and low-carbon, strong and resilient, and intelligent and flexible, and promote growth of source and storage regulating capacity by more than 40%.
The second direction is accelerating the layout of energy infrastructure driven by new technologies and new models. Such infrastructure includes renewable hydrogen production, green fuels, charging facilities, comprehensive nuclear energy utilization, virtual power plants, integrated energy stations, and more. Here are a set of figures: by 2030, China’s charging infrastructure will reach 40 million units, achieving a doubling of development, and charging will become more convenient in the future. The scale of renewable hydrogen production will reach 2 million tons, used in steel and chemical production and other applications, making heavy industry cleaner. The regulating capacity of virtual power plants will reach more than 50 million kilowatts, equivalent to 50 large thermal power units that burn no coal.
The third direction is accelerating the digital and intelligent transformation of traditional energy infrastructure. Some time ago, we organized an “AI+” energy integration pilot, launching 51 high-value application scenarios in fields such as smart grids, smart coal mines, smart oil and gas fields, and smart power plants, comprehensively raising the intelligence level of infrastructure. Next, we will continue to deepen the opening of application scenarios and accelerate their implementation.
Reporter, National Business Daily:
The central authorities have deployed the coordinated advancement of the “six networks,” including the water network and the new-type power grid, with the new-type power grid being the core support of the new-type energy system. During the 15th Five-Year Plan period, the rapid growth of new energy capacity places higher demands on grid carrying and regulating capacity. What systematic arrangements does the NEA have for new-type power grid construction? And how will diverse electricity demands be guaranteed?
Du Zhongming:
Thank you for your question. Since the 18th Party Congress, China’s grid development has achieved world-renowned results. We have built the grid with the world’s largest scale of integrated new energy, as well as the large grid with the highest transmission voltage levels and the strongest transmission capacity. This large grid carries more than 10 trillion kilowatt-hours of electricity consumption annually while consistently maintaining safe and stable operation. Currently, the length of transmission lines of 220 kV and above nationwide exceeds 1 million kilometers, the scale of integrated new energy exceeds 1.8 billion kilowatts, 24 ultra-high-voltage direct-current arteries have been built, and the scale of West-to-East Power Transmission has reached 340 million kilowatts. More and more western green power is now being “flash-delivered” to eastern load centers through this large grid.
The new-type power grid you mentioned is an important component of the “six networks” major infrastructure laid out by the state, and it is also an important carrier for building the new-type energy system and new-type power system. Building the new-type power grid can more forcefully promote the development and accommodation of new energy, more flexibly support the high-speed development of computing power, more reliably ensure power supply quality for emerging industries, and more efficiently meet EV charging demand. At present, in accordance with the unified deployment of the Party Central Committee and the State Council, we are accelerating the formulation of an implementation plan for new-type power grid construction, accelerating the building of a new-type power grid that is safe and reliable, green and low-carbon, strong and resilient, and intelligent and flexible. During the 15th Five-Year Plan period, national grid fixed-asset investment will reach more than 5 trillion yuan. Going forward, we will focus on “three news.”
The first “new” is improving the grid’s new architecture. We will work to build a new-type power grid platform with coordinated development of the main grid, distribution grid, and microgrids, strengthen grid security and resilience, and hold firm the bottom line of safe large-grid operation. During the 15th Five-Year Plan period, we will newly commission 15 ultra-high-voltage DC green-power mega-corridors, raising the scale of West-to-East Power Transmission to over 420 million kilowatts. At the same time, we will build more than 6 mutual-support projects, raising power mutual-support capacity by about 40 million kilowatts, promote the digital and intelligent upgrading of distribution grids, accelerate smart microgrid development, upgrade charging networks, promote vehicle-grid interaction, accelerate the construction of high-power charging facilities and battery-swap facilities for electric heavy-duty trucks, and support and guarantee the charging needs of more than 110 million electric vehicles.
The second “new” is making breakthroughs in key new technologies. We will accelerate the innovative application of grid-forming technology, long-duration energy storage technology, and 100% new-energy mega-base transmission technology, and implement the “AI+ grid” project to equip the grid with an intelligent “brain.”
The third “new” is rolling out more and better new services. During the 15th Five-Year Plan period, we will continuously optimize new energy grid-connection and transmission services and substantially enhance the system’s regulating capacity. By 2030, the scale of new-type energy storage will reach 300 million kilowatts, serving and supporting the high-level accommodation of more than 2.8 billion kilowatts of new energy. We will strengthen computing-power coordination, serving and supporting the electricity needs of computing power with different characteristics, such as intelligent computing, general computing, and supercomputing. We will effectively improve power supply quality, advance the inclusive provision of power services, and accelerate the transition from “having access to electricity” to “using electricity well” and “using green electricity.” Thank you!
Reporter, Red Star News:
My question is: The Plan for Building a New-Type Energy System during the 15th Five-Year Plan Period proposes to coordinate “western power for western use” and “West-to-East Power Transmission.” How will China’s regional energy deployment be coordinated in the future? And what new changes will occur in the national pattern of energy production and consumption?
Wan Jinsong:
Thank you for your question. China’s energy production is mainly concentrated in the western region, while energy consumption is mainly concentrated in the eastern and central regions. Over the long term, an overall pattern of “West-to-East Power Transmission,” “West-to-East Gas Transmission,” “West-to-East Coal Transport,” and “North-to-South Coal Transport” has taken shape. During the 15th Five-Year Plan period, while expanding “western energy delivered eastward,” we will intensify the advancement of “western energy for western use.”
“Western energy delivered eastward” must further expand in scale to effectively ensure the energy needs of the eastern and central regions. In the power sector, we will accelerate the construction of clean energy bases such as wind and solar in the “Three North” regions, along with outbound transmission corridors, with an expected addition of more than 80 million kilowatts of West-to-East Power Transmission capacity. In the oil and gas sector, we will accelerate the construction of West-to-East Gas Transmission corridors. In the coal sector, we will continuously optimize coal transport layout and work to expand the scale of Xinjiang coal exports. At the same time, we will promote the tapping of potential in key energy-consuming areas in the central and eastern regions, strengthen the nearby development and utilization of local non-fossil energy, rationally lay out new supporting power sources, and promote “electricity from afar, and also from nearby.”
“Western energy for western use” must further strengthen capacity coordination and steadily guide the optimization of productivity layout. We will guide high-energy-consuming industries to transfer to the western region in an orderly manner, promote coordination between the layout of advanced manufacturing, computing power, hydrogen energy, and other industries and the development of clean energy bases, and promote the optimization of the spatial layout of energy-consuming industries. In the future, the western region will not only deliver electricity, coal, and gas outward, but also deliver products and tokens outward.
Going forward, as “western energy for western use” and “western energy delivered eastward” are advanced in depth, new changes will also emerge in the national pattern of energy production and consumption. Two changes are worth noting here. First, the trend of integrating clean energy with industry will accelerate, with more high-energy-consuming, low-emission industries and projects landing in the west and using clean energy; capacity integration will become a new driver of western economic development. Second, new forms of clean energy transmission will emerge. The Plan proposes deploying a batch of green hydrogen-ammonia-methanol projects in the western and northern regions, strengthening guidance on hydrogen pipeline network layout, so that cross-provincial and cross-regional outbound transmission of new energy will not only take the form of electricity but can also be delivered in the form of hydrogen energy and green fuels.
Reporter, CCTV (China Media Group):
It was just mentioned that investment in key energy projects and new business models during the 15th Five-Year Plan period will exceed 20 trillion yuan. What major engineering projects has the Plan for Building a New-Type Energy System during the 15th Five-Year Plan Period arranged? And what role will this investment play in driving economic growth?
Wang Hongzhi:
Thank you for your question. I will answer this final one.
In the 15th Five-Year energy plan, there are both “large” projects for energy production and transmission and “new” projects that embody new-quality productive forces in energy. Overall, these projects can be divided into three major categories:
The first category is for strengthening energy security. This mainly includes oil and gas, coal, supporting power sources, and coal-to-oil/gas, which form the fundamental base for energy supply security. Future investment will maintain a steady upward trend, with the five-year total investment scale increasing by more than 10% over the 14th Five-Year Plan period.
The second category is for advancing the green, low-carbon transition. This is mainly about implementing a ten-year doubling initiative for non-fossil energy. On the generation side, the dominant position of new energy will become more prominent, with its share of generation investment further rising to nearly 60%. On the grid side, we will build inter-provincial and inter-regional transmission corridors, inter-provincial power mutual-support projects, the grid’s main network framework, distribution grids, and smart microgrids, making the power system more resilient and improving the level of resource allocation. Investment in the grid during the 15th Five-Year Plan period will increase by more than 30% over the 14th Five-Year Plan period. After these projects are completed, the electricity everyone uses will be cleaner and greener.
The third category is for advancing the development of new-quality productive forces. This mainly includes laying out a batch of green hydrogen-ammonia-methanol production base projects, expanding multi-user direct green power connection scenarios, and building new-industry and new-business-model projects including new-type energy storage, integrated energy services, virtual power plants, and computing-power coordination. Investment in these new projects during the 15th Five-Year Plan period will exceed 2 trillion yuan—serving both as a “new engine” driving investment growth and opening “new space” for energy transition and development.
Energy project investment is large in scale and has a strong driving effect. This 20 trillion yuan invested will effectively drive the comprehensive development of the entire industrial chain—including scientific research and development, equipment manufacturing, and construction—injecting strong momentum into high-quality economic development.