China News Service, Beijing, April 10 (Reporter Wang Mengyao) For every 3 kilowatt hours of electricity used, there is 1 kilowatt hour of green electricity. China relies on its high proportion of green electricity applications and the unique structure of coal power generation to achieve stable power supply amid the turbulent international situation.
As tensions in the Middle East continued and shipping in the Strait of Hormuz was blocked, international energy prices rose collectively, with international oil prices once exceeding US$120 per barrel. Morgan Stanley said that the global liquefied natural gas (LNG) market is expected to have a supply gap of approximately 15 million tons (approximately 4%) in 2026. International Energy Agency officials say the escalating conflict in the Middle East is plunging the world into its worst energy crisis in decades.
"Any economy that relies heavily on imported LNG or oil for power production will face skyrocketing power prices and potential power shortages." Nomura China chief economist Lu Ting said that in the global energy crisis, China has a comparative advantage in power supply. China's power system is almost self-sufficient in primary energy sources, with almost no natural gas or oil used in the power generation process. It mainly relies on domestically mined coal and has sufficient spare capacity.
Official data shows that coal power has long played a "backbone" and "ballast" role in ensuring the safe and stable supply of electricity in China. Coal power accounts for less than 40% of the installed capacity, providing about 60% of the power generation.
According to data from the National Energy Administration of China, China's total primary energy production will reach 5.13 billion tons of standard coal in 2025, breaking through the 5 billion tons mark for the first time. The effectiveness of energy supply guarantee is the best year in the "14th Five-Year Plan". Data from the China Coal Industry Association shows that China's coal output will reach 4.83 billion tons in 2025, a year-on-year increase of 1.2%, setting a record high.
At the same time, the proportion of clean energy power generation such as wind power and photovoltaics continues to increase, further reducing dependence on single fossil energy. In 2025, China's large-scale industrial hydropower, nuclear power, wind power and solar power and other clean energy power generation were 3,421.3 billion kilowatt-hours, a year-on-year increase of 8.8%, accounting for 35.2% of the industrial power generation above designated size, an increase of 2.1 percentage points from the previous year.
Zou Ji, CEO of the Energy Foundation and President of China, said that China's energy structure is still dominated by coal, but the proportion of wind, solar, water, and nuclear in primary energy and their power generation capacity and power generation efficiency have become the main supporting factors for new energy sources.
Since the "14th Five-Year Plan", China has built the world's largest renewable energy system. In 2025, the country's new non-fossil energy power generation will account for 112.1% of the entire society's new electricity consumption, and renewable energy power generation will reach approximately 4.0 trillion kilowatt hours, exceeding the combined electricity consumption of the 27 EU countries (approximately 3.8 trillion kilowatt hours). Zheng Shanjie, director of China's National Development and Reform Commission, said that by the end of the 15th Five-Year Plan, most of China's new electricity demand will be met by new clean energy power generation.
Electricity is the "food" for economic development. Lu Ting said that China’s power system is both on the track of low-carbon transformation and has shown strong resilience to oil and natural gas price shocks. Its unique structure makes the manufacturing industry almost unaffected by the LNG and oil price fluctuations currently sweeping the global market. China's manufacturing industry, especially export companies, may gain greater comparative advantage in power supply. (over)
