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At the fourth "Energy, Power, and Development" forum, Zeng Yachuan, Director of the Department of Policies and Regulations at the National Energy Administration, highlighted that China's energy sector is currently grappling with six major challenges. These issues pose significant obstacles to the country’s goal of building a moderately prosperous society in all respects over the next eight years. Without substantial reforms and a shift in development strategies, it will be difficult to meet the energy demands required for sustained economic growth and social progress.
The first contradiction lies between rising domestic demand and increasing external pressure. As China’s per capita GDP surpassed $5,000 last year, the nation is in a crucial phase of industrialization and urbanization. By 2020, the urbanization rate is expected to reach 60%, adding over 160 million new urban residents who will significantly boost energy and electricity consumption. However, globally, developed nations saw minimal energy growth during similar economic transitions, while China now consumes more than 20% of the world’s total energy. With global competition for resources intensifying, securing energy from abroad has become increasingly challenging, and environmental and climate constraints are growing stronger.
Another key issue is the tension between fairness and efficiency. Although China’s per capita energy use is close to the global average, there is a large disparity between urban and rural areas, with many regions still lacking basic energy access. Additionally, China’s energy efficiency lags behind both developed and developing countries, resulting in high waste and inefficiency. There is significant room for improvement in energy conservation and efficiency.
The third challenge is the imbalance between energy structure and security. Coal accounts for 70% of China’s primary energy supply, which has helped ensure energy security but also caused severe environmental damage. The share of renewable and clean energy remains low, and increasing reliance on oil and gas would heighten dependence on foreign sources, threatening national energy security.
A fourth contradiction is the gap between quantity and quality of energy development. While China leads the world in energy production and capacity, its technological innovation and equipment capabilities still lag behind, particularly in key areas that rely heavily on foreign imports.
Additionally, there is a mismatch between the scale of China’s energy system and its management capabilities. Despite being the second-largest economy, the country’s energy infrastructure outpaces its ability to manage it effectively, with outdated systems and insufficient expertise.
Finally, there is a conflict between local ambitions and national energy planning. Many regions and departments remain focused on growth, which could strain energy supply and security. At the same time, the need to control overall energy consumption is urgent, leading to increasing tensions and conflicts across different levels of governance.
Zeng emphasized that if these contradictions are not addressed, they could hinder China’s future energy development and make it harder to achieve both the goals of a well-off society and a beautiful China. Therefore, it is essential to push forward with comprehensive reforms in energy production and consumption.
China's energy development faces six major contradictions