- Govt to continue implementing coal capacity reserve system
- Plan is to cut energy intensity per unit of GDP by 3% in 2025
Mysteel Global: China has unveiled its 2025 energy roadmap on the sidelines of this year’s Two Sessions national political meetings, laying out a strategy to balance energy security, electricity market reforms, and carbon reduction, according to a government draft plan released on Wednesday.
China’s Two Sessions meetings – the annual assemblies of the National People’s Congress and the National Committee of Chinese People’s Political Consultative Conference – began on Tuesday in Beijing.
The blueprint underscores the continued pivotal role of coal in safeguarding energy supply while accelerating reforms in the power market system, according to the plan.
In 2025, the government will continue to implement the coal capacity reserve system, ensuring a flexible backup supply to meet power demand. At the same time, it will continue to promote green and intelligent coal mining, the draft notes.
In the power sector this year, China will complete preliminary work for creating a unified national electricity market system, integrating spot markets, capacity compensation mechanisms, and ancillary services markets into a cohesive framework.
The plan also aims to boost market-based electricity transactions and improve the efficiency of power system dispatch. In parallel, the government will deepen the marketisation of renewable energy tariffs, further aligning electricity prices with market supply and demand dynamics.
Meanwhile, the government pledges to accelerate the development of large-scale renewable energy bases in desert areas by establishing offshore wind farms.
The plan highlights the need to coordinate renewable energy development with grid infrastructure, with a stronger focus on building local consumption and energy storage systems to reduce curtailment.
The blueprint also marks a critical step in aligning the nation’s energy strategy with China’s dual carbon goals – achieving peak carbon by 2030 and carbon neutrality by 2060 – while ensuring supply stability in the face of rising energy demand.
China aims to reduce energy intensity per unit of GDP by around 3% in 2025, after adjusting for raw material energy use and non-fossil fuel consumption. This target, while modest, balances the nation’s economic growth needs with its carbon reduction commitments.
Meanwhile, in its review for 2024, the country saw a remarkable expansion in renewable energy capacity last year, with 360 million kilowatts (kW) of new wind and solar capacity added, accounting for 82% of total new power installations. This brought China’s total installed capacity for renewable energy to 1.89 billion kW, or 56.4% of total installed capacity, the plan notes.
The power market reform also advanced last year, with the share of market-based electricity transactions surpassing 60% of total consumption.
China also made strides in coal industry modernisation, completing 511 intelligent coal mine upgrades and keeping coal production capacity stable at over 1.5 billion tonnes (bnt)/year, it noted.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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