China plans to significantly enhance the security, resilience, and structural efficiency of its energy system over the next five years, driven by investments exceeding 20 trillion yuan ($3 trillion) in key energy projects and emerging technologies, according to national authorities.
Wang Hongzhi, director of the National Energy Administration (NEA), outlined that by 2030, the country’s comprehensive energy production capacity is expected to reach 5.8 billion metric tons of standard coal equivalent. This growth is aimed at strengthening energy self-reliance while maintaining a diversified and controllable import strategy. Currently, China’s installed power capacity has surpassed 4 billion kilowatts and is projected to increase to 5.4 billion kilowatts within the coming decade.
Renewable energy sources are set to become the dominant power supply, with new energy accounting for over 50 percent of both installed capacity and electricity generation by 2030. This shift coincides with the nation’s efforts to peak coal and oil consumption as part of the broader energy transition. Wang highlighted that surging electricity demand, fueled by industries such as artificial intelligence, is a key driver of this expansion. He noted that generating a five-second high-definition AI video consumes as much power as charging 10 smartphones, underscoring the need to integrate computing infrastructure with power resource allocation.
To achieve this, China will align major computing hubs with large renewable energy bases in the western regions, while advancing distributed power solutions, microgrids, and virtual power plants in the eastern parts of the country to cater to localized computing demand.
The NEA emphasized that the share of non-fossil fuels in new energy consumption is expected to increase beyond the 45 percent recorded during the 14th Five-Year Plan (2021-2025). The government plans to meet the additional electricity demand largely through clean energy sources, including wind, solar, hydropower, and nuclear power. Yi Yuechun, general manager of the China Renewable Energy Engineering Institute, stated that renewable energy has already become the primary contributor to China’s domestic energy growth and anticipates that fossil fuels will no longer dominate the power supply during the 15th Five-Year Plan (2026-2030).
Supporting this transition, the NEA projects that non-fossil energy capacity will exceed 3.5 billion kilowatts by 2030, representing nearly a 50 percent increase from 2025 figures. Wind and solar installations alone are expected to make up more than 2.8 billion kilowatts. Traditional energy sectors will also undergo green upgrades, including modernization of coal power plants with next-generation technologies.
A pivotal element of this energy transformation is the modernization of the national grid. NEA spokesperson Ren Yuzhi revealed plans for fixed asset investments exceeding 5 trillion yuan in grid infrastructure over the next five years. This includes the addition of 15 ultra-high-voltage (UHV) direct current transmission corridors to facilitate the transfer of over 420 million kilowatts of green power from western renewable-rich regions to eastern demand centers.
Upgrades to distribution networks and smart microgrids will also support the charging infrastructure for more than 110 million electric vehicles nationwide. Ye Xiaoning, a senior engineer at the State Grid Energy Research Institute, highlighted that the extensive UHV network is integral to efficiently managing power flows over vast distances and is fundamentally reshaping China’s energy landscape.
