Strategic Vision for a 'Strong Energy Power'
China's National Energy Administration (NEA), in alignment with the broader directives of the 15th Five-Year Plan (2026-2030), has articulated a set of key priorities for the nation's energy sector. These directives underscore China's commitment to fostering a 'Strong Energy Power', a concept introduced for the first time in the plan's recommendations, signifying a robust energy industrial chain, supply chain, and innovation system. The overarching goal is to balance energy security with an accelerated green and low-carbon transition, crucial for China's modernization and economic development. The recommendations for the 15th Five-Year Plan were adopted by the Communist Party of China (CPC) on October 23, 2025, with the final plan expected to be approved by the National People's Congress in March 2026.
Core Pillars of Energy Development
The energy priorities for the 2026-2030 period are multifaceted, addressing both supply-side expansion and demand-side efficiency, alongside systemic improvements. Key areas of focus include:
- Scaling Up Renewable Energy Supply: A significant emphasis is placed on expanding the deployment of clean energy sources, including wind, solar, hydro, and nuclear energy. The plan advocates for coordinated development between local consumption and long-distance transmission to maximize clean energy utilization. Targets include increasing non-fossil fuels to approximately 25% of primary energy consumption by 2030 and expanding wind and solar installed capacity to over 1,200 gigawatts.
- Safe and Orderly Substitution of Fossil Fuels: While transitioning to cleaner energy, the plan calls for the safe and orderly replacement of fossil fuels. This involves the upgrading and retrofitting of coal-fired power plants and promoting coal substitution in scattered consumption areas. The objective is to ensure cleaner and more efficient use of existing fossil energy resources during the transition.
- Enhancing Power System Flexibility and Resilience: To accommodate a higher share of intermittent renewable energy, the plan prioritizes improving the national power grid's flexibility and resilience. This includes better integration of renewable energy sources, significant development of pumped storage and energy storage projects, and the construction of smart grids and microgrids to enhance system stability.
- Strengthening Carbon Governance and Market Mechanisms: China aims to bolster its efforts in carbon reduction through improved governance and market-based tools. This involves upgrading the national carbon emissions quantifying and accounting system, implementing carbon assessment and management at various levels, and expanding the national emissions trading system (ETS) to encompass more sectors beyond power generation. These measures support the national goal of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality by 2060.
- Promoting Integrated Development of Coal and New Energy: The NEA has issued guidelines encouraging coal-mining regions to accelerate the development of wind and solar energy projects. This integrated approach includes promoting clean energy substitution through technologies like electric and hydrogen-powered mining trucks, utilizing renewable energy for heating and cooling, and establishing smart microgrids for green electricity supply and trade within mining areas.
Broader Implications and Future Outlook
These energy priorities are integral to China's broader 15th Five-Year Plan, which also stresses high-quality growth, technological independence, and a resilient domestic market. The directives reflect a strategic pivot towards innovation-driven development and environmental sustainability. The NEA's outlined tasks are expected to guide significant investments and policy implementations over the next five years, shaping China's energy landscape and its contribution to global climate goals.
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