In 2024, the Party Leadership Group of the National Energy Administration of the Communist Party of China published a signed article titled ";Supporting Chinese-Style Modernization with Energy Transformation and Development" in People's Daily. The article proposed: To promote the transformation of terminal energy consumption from mainly electric energy substitution to diversified clean alternatives such as electricity, hydrogen, and ammonia, and to make major energy-consuming fields become important engines for energy transformation. Strive to increase the electrification level of terminal energy consumption to around 30% by 2025.
This means that as more new energy sources enter the power system, it is best for them to be connected to the grid but not put into use, directly converting into other products such as hydrogen and ammonia for energy consumption, rather than being used through the transmission and distribution of the large power grid, thereby reducing the complexity of the new power system. We can see that many power generation enterprises are also vigorously developing integrated industries such as wind, solar, hydrogen, ammonia and methanol, gradually becoming chemical enterprises.
The full text is as follows
Energy is an important material foundation for human survival and development. The low-carbon development of energy is related to the future of mankind. The "Decision" of the Third Plenary Session of the 20th Central Committee of the Communist Party of China closely centers on the theme of promoting Chinese-style modernization, sketches out strategic measures for further comprehensive deepening of reform, and puts forward new arrangements and requirements for energy reform and development. We must study it carefully, understand it profoundly and grasp it accurately, and support Chinese-style modernization with energy transformation.
Have a profound understanding of the remarkable achievements made in China's energy transition
Since the new era, China has adhered to the development path of giving priority to ecological conservation and pursuing green and low-carbon development. It has unswervingly implemented the new energy security strategy, and its energy transformation and development have continuously reached new heights. This has effectively guaranteed the energy demand for high-quality economic and social development and supported the construction of a beautiful China.
The transformation of the energy consumption structure has achieved remarkable results. Since the 18th National Congress of the Communist Party of China, the policy of giving priority to energy conservation has been effectively implemented. Energy consumption per unit of GDP has decreased by more than 26%, and a total of about 1.4 billion tons of standard coal have been saved in energy consumption. We have been continuously expanding the scale of clean energy utilization. In 2023, the proportion of clean energy consumption reached 26.4%, an increase of 10.9 percentage points compared with 10 years ago. The proportion of coal consumption has cumulatively decreased by 12.1 percentage points, and the proportion of green electricity consumption has reached around 36%. We have further advanced the substitution of electric energy. The electrification rate of terminal energy consumption across society has reached 28%, an increase of approximately 7 percentage points compared with 2014.
The supply capacity of green energy has been significantly enhanced. The development of new energy leads the world. Its installed capacity has increased tenfold compared to ten years ago and has remained the world's largest for many consecutive years, accounting for approximately 40% of the global total. This has driven the installed capacity of non-fossil energy power generation to historically surpass that of thermal power. The annual power generation of renewable energy reaches about 3 trillion kilowatt-hours, accounting for approximately one-third of the total electricity consumption of the whole society. Among them, the power generation of wind power and photovoltaic power exceeds the electricity consumption of urban and rural residents across the country. Wind power and photovoltaic products have covered over 200 countries and regions around the world. The costs of wind power and photovoltaic power generation have decreased by 60% and 80% respectively over the past 10 years, effectively promoting a significant reduction in the cost of energy transition and facilitating global energy transition and sustainable development.
The development of new energy productivity is accelerating. The modernization level of the industrial chain has been continuously enhanced. A complete R&D, design and manufacturing system for the wind power and photovoltaic industrial chain has been established. The conversion efficiency of mass-produced advanced crystalline silicon photovoltaic cells exceeds 25%, and the maximum single-unit capacity of offshore wind turbines has reached 18 megawatts. We have comprehensively mastered the fourth-generation nuclear power technologies of large-scale third-generation pressurized water reactors and high-temperature gas-cooled reactors. A number of major projects, such as the "Hualong One" and 1 million kilowatt hydropower projects, have been put into operation. New models and forms of energy have been developing and growing rapidly. The annual exports of the "new three" - new energy vehicles, lithium batteries and photovoltaic products - have exceeded the one trillion yuan mark, helping to continuously consolidate and enhance China's industrial chain advantages.
Strongly support the construction of a beautiful China. The guarantee of green energy use for people's production and life has been continuously strengthened, and the clean heating rate in northern regions has approached 80%. The world's largest-scale charging infrastructure system has been established, supporting China's production and sales of new energy vehicles to remain the world's largest for nine consecutive years, with a total of over 20 million vehicles in use. The number of coal-fired boilers across the country has decreased by over 80%, and more than 95% of coal-fired power units have achieved ultra-low emissions, with emission levels comparable to those of natural gas power generation units. We will continue to promote the quality upgrade of refined oil products, and the quality of refined oil products will reach the world's advanced level.
Deepen energy sector reform to enhance the impetus and vitality of transformation and development
The "Decision" of the Third Plenary Session of the 20th Central Committee of the Communist Party of China emphasizes accelerating the planning and construction of a new energy system. At the same time, it has put forward a series of major reform measures for deepening the reform of the energy management system, improving policies and measures for the consumption and regulation of new energy, and strengthening the construction of multilateral cooperation platforms in the energy field, which has pointed out the direction and path for further promoting energy transformation. On the new journey, we will further deepen energy sector reform, enhance the impetus and vitality of energy transformation, and focus on improving three systems.
Improve the system for ensuring the supply of clean energy. Establish a new mechanism for energy development and utilization oriented towards green and low-carbon, promote the transformation of clean energy production and supply from centralized development and large-scale unified transmission and distribution to a balance between regional self-balance and cross-regional optimal allocation, and form an energy production and supply pattern that prioritizes meeting new energy demands through clean and low-carbon energy and gradually replaces existing fossil energy. Improve the complementary and substitution policy mechanisms among different energy types, promote the optimal combination of coal and new energy, and achieve coordinated complementarity and orderly substitution between traditional energy and new energy. We will improve the construction and operation mechanisms of modern energy infrastructure, build a unified national electricity market, accelerate the establishment of a new type of power system, achieve a coordinated layout of power sources, grids, loads and storage, and optimize the operation and dispatching mechanism of oil and gas pipelines.
Improve the incentive system for green energy consumption. Improve the system of total resource management and comprehensive conservation, and establish a new mechanism for the comprehensive transformation from dual control of energy consumption to dual control of carbon emissions. Improve the mechanism for clean and efficient utilization of coal. Improve the policies and measures for the consumption and regulation of new energy, improve the price mechanism that encourages flexible power sources to participate in system regulation, implement the capacity electricity price mechanism for coal-fired power well, and study and establish a price formation mechanism for new energy storage. Improve the trading system of green power certificates, promote the development of the green certificate market, and enhance the effective connection among the power market, green certificate market, carbon market, etc. Promote the transformation of terminal energy consumption from mainly electric energy substitution to diversified clean alternatives such as electricity, hydrogen and ammonia, and drive major energy-consuming fields to become important engines for energy transformation.
Improve the system for independent innovation in the energy industry chain. Establish a major scientific and technological collaborative innovation system for clean and low-carbon energy, form an energy technology innovation system oriented by the market, led by national strategic scientific and technological forces, with enterprises as the main body and deep integration of industry, academia, research and application, and accelerate the breakthrough of a number of key technologies for clean and low-carbon energy. Establish and improve the collaborative innovation mechanism for the clean and low-carbon energy industry chain, build a policy mechanism that is oriented towards technological progress on the demand side and enables efficient and coordinated evaluation, transformation and promotion of energy technology achievements, and form advanced technologies and industrialization capabilities through engineering integration and application. Improve the incentive policies for scientific and technological innovation in the green and low-carbon transformation of energy, and explore the use of market-oriented methods to attract social capital to support the research and development and demonstration projects of strategic clean and low-carbon energy technologies that require large investment and high research difficulty.
Strive to write a new chapter in the transformation and development of energy
To comprehensively build a modern socialist country, it is necessary to better balance development and security, take into account both the present and the long term, accelerate the planning and construction of a new energy system, promote low-carbon transformation and high-quality development of energy, and provide strong energy support for Chinese-style modernization.
Strengthen the foundation for safe carbon reduction. Based on China's resource endowment, in accordance with the principle of establishing new systems before phasing out old ones and making overall plans, efforts should be made to promote a stable and orderly transformation of the energy sector. Give full play to the bottom-line guarantee role of fossil energy, enhance the clean and efficient utilization of coal, and improve its supporting and regulating role in the low-carbon transformation of energy. We will intensify oil and gas exploration and development as well as increase reserves and production to ensure that domestic crude oil output remains stable at 200 million tons in the long term and that the self-sufficiency rate of natural gas is no less than 50%. Improve the energy infrastructure network, optimize the pattern of west-to-east power transmission and north-to-south power transmission, and strengthen the construction and operation of the "national network" for oil and gas. Steadily advance the construction of coal production capacity reserves, accelerate the development of supporting and regulating power sources, and enhance the capacity to cope with various risks and challenges.
Increase the supply of non-fossil energy. We will continue to expand the scale of non-fossil energy utilization and build a high-level new energy consumption system. We will steadily advance the development of hydropower in major river basins and maintain a steady pace of nuclear power construction. Steadily advance the construction of large-scale new energy bases, optimize the planning and layout of offshore wind power bases, and vigorously promote distributed renewable energy systems. Adhere to the "trinity" of new energy, regulating power sources and power grid construction in terms of scale, layout and sequence, enhance the power grid's capacity to accept, allocate and regulate clean energy, and maintain an annual increase of over 100 million kilowatts in new energy installed capacity. By 2030, 70% of the new energy consumption should be supplied by non-fossil energy, and the proportion of non-fossil energy consumption should be increased by 1 percentage point each year.
Promote energy conservation and carbon reduction on the consumption side. Promote the transformation and upgrading of traditional energy industries, enhance the clean and efficient utilization of coal, and optimize policies for the utilization of natural gas. We will make greater efforts to promote energy conservation and carbon reduction on the consumption side, vigorously implement energy conservation and carbon reduction actions in key areas such as industry, construction and transportation, and reserve the energy space freed up for emerging industries, future industries and people's livelihood. Carry out energy efficiency improvement actions in key industries and fields, accelerate the substitution of electric energy in industries such as manufacturing, construction and transportation, enhance the integration and interaction between new energy vehicles and the power grid, and achieve a terminal energy consumption electrification level of around 30% by 2025. Further improve the green certificate system and continuously expand the consumption of green certificates and green electricity.
Strengthen green and low-carbon technological innovation and international cooperation. Focus on developing new quality productive forces, consolidate and expand the advantages of the new energy industry, strengthen technological innovation in large-scale wind power, high-efficiency photovoltaic, solar thermal and other fields, and promote continuous new breakthroughs in cutting-edge technologies in advanced nuclear energy, new energy storage, hydrogen energy and other fields. Promote the in-depth integration of advanced information technology and the energy industry, and accelerate the cultivation of new forms and models of energy. We will promote high-quality cooperation on green energy under the Belt and Road Initiative, actively facilitate the implementation of wind power, solar power and smart grid projects, and enhance international alignment and mutual recognition of clean energy technologies and standards. Deeply participate in global energy governance, and build and operate the Belt and Road Energy Partnership and the Global Clean Energy Partnership well.
