China has announced a comprehensive action plan to accelerate the development of a “new electricity system,” aiming to enhance low-carbon growth and ensure energy security. The plan, jointly issued by the National Development and Reform Commission, the National Energy Administration (NEA), and the National Data Administration, outlines initiatives in nine critical areas from 2024 to 2027.
The plan focuses on increasing clean electricity transmission through the grid by leveraging advanced power generation, regulation, and control technologies. With rising wind and solar power generation in China’s deserts and desertified regions, there is a pressing need to transmit this clean energy to areas with high electricity demand.
The NEA highlighted that China aims to boost the installed capacity of wind and solar power facilities in these regions to 455 million kilowatts by 2030. Currently, cross-regional transmission lines mainly carry coal and hydropower.
In addition to expanding clean energy transmission, the plan includes upgrading coal-fired power plants to cut carbon emissions significantly. Despite the push for low-carbon alternatives, coal-fired power will remain vital in providing reliable electricity. The NEA stressed the need for accelerated low-carbon transformation within this sector to meet the country’s carbon emission peak goals.
China’s new-energy vehicle market is also growing substantially, with sales rising 32 per cent in the first half of 2024. The plan calls for a significant increase in charging infrastructure to support this expansion and enhance the integration between electric vehicles (EVs) and the power grid.
China’s charging piles reached 10.24 million units by the end of June, a 54 per cent increase from the previous year. Efforts are underway to build charging facilities in rural areas, with one-third of provincial-level regions establishing charging piles in smaller towns and villages.
The plan also addresses the need for a stable electricity system and an upgraded power distribution network. China’s economic activity relies heavily on a reliable power supply, as electricity consumption grew rapidly, climbing from 8.1 per cent to nearly 4.66 trillion kilowatt-hours in the first half of the year.
As part of its commitment to green development, China has set ambitious dual carbon goals: to peak carbon emissions by 2030 and achieve carbon neutrality by 2060, ahead of many developed countries’ timelines. The new action plan represents a crucial step in realising these targets while supporting the nation’s energy and economic needs.