China Sets Ambitious Energy Overhaul Targets by 2030

China has unveiled an ambitious plan to overhaul its energy system by 2030. The goal is to establish a clean, low-carbon, secure, and efficient energy system during the country's 15th Five-Year Plan period (2026-2030). According to Wang Hongzhi, head of the National Energy Administration, China's energy sector will exhibit four key features after five years of development. The system will be more secure and resilient, with a total energy production capacity reaching 5.8 billion tons of standard coal equivalent.

The plan also aims for a better-balanced energy mix, with renewable energy sources exceeding 50% of the country's installed power generation capacity. Non-fossil energy is projected to generate 50% of total electricity, becoming China's main power source. The system will undergo a profound transformation, accelerating the construction of robust, resilient, green, low-carbon, integrated, intelligent, and efficient new energy infrastructure.

The plan addresses challenges such as ongoing geopolitical conflicts disrupting global oil and gas supply chains and domestically, the rapid integration of wind and solar power creating grid stability challenges. To achieve these goals, China will focus on three priorities: further developing and expanding reserves of fossil energy resources, significantly increasing the supply of non-fossil energy, and broadening international energy cooperation.

Investment in major energy projects and emerging business models is expected to maintain steady growth during the 15th Five-Year Plan period, with total investment projected to exceed 20 trillion yuan ($2.94 trillion). The fixed-asset investment in China's power grid is expected to exceed 5 trillion yuan ($737.4 billion) during the same period.