China’s Energy Industry is Transitioning from “Price Mechanism” to “Price Value” – The Shanghai Securities Journal reported on March 26, 2025, at 08:34, by Liu Xiaoying. The new developments in the energy sector are being driven by both market mechanisms and policy initiatives, moving from ‘policy-driven growth’ to ‘innovation-driven growth,’ and from ‘regulatory expansion’ to ‘quality improvement.’ The Chinese energy sector is currently entering a new phase of high-quality development.
Market mechanisms and innovation are being prioritized to enhance the dynamism of the energy industry. This transition includes a shift from ‘policy-driven initiatives’ to ‘innovation-driven initiatives’ and from ‘regulatory expansion’ to ‘quality improvement.’ China’s energy sector is poised for a new phase characterized by high-quality growth.
The China Electric Power Research Institute highlighted a significant growth forecast for the energy sector. From March 23 to 26, the 15th National Energy Conference took place in Hubei, gathering industry leaders and stakeholders to discuss the mechanisms of energy production and supply chain collaborations. A major highlight of the conference was the emphasis on “energy transition,” reflecting the industry’s focus on innovative energy solutions and collaborative efforts.
The Shanghai Securities Journal noted that the conference showcased various innovative energy production models, with a particular focus on the industry’s rapid growth trajectory. By 2024, it is projected that China’s new energy capacity will reach 74.66 GW with a total energy storage capacity of 176.45 GWh, representing an impressive increase of 131.86% in capacity and 163.8% in storage compared to previous years. This marks a significant milestone in the industry.
The energy sector is accelerating its development towards achieving high-quality standards, with a strong emphasis on renewable energy sources such as wind and solar power. The emphasis on new energy systems is becoming increasingly important, as these sources are key to building a sustainable power supply system.
According to the National Energy Administration, the energy sector is expected to exceed 200 billion yuan in total revenue by 2025, with projections for revenues to reach 300 billion yuan by 2027 and 400 billion yuan by 2030. This indicates a robust growth outlook for China’s energy sector.
Experts believe that the energy industry must adapt to two critical value propositions: one is to effectively engage in market transactions and strengthen supply chain services; the other is to respond to the dynamic nature of the electricity market and adjust to the fluctuating demands of energy resources.
As the industry transitions, the focus is on ensuring that the energy sector remains resilient and can navigate the challenges posed by market volatility. The emphasis on higher quality energy production and innovative solutions is critical for long-term growth and sustainability in the sector.
In summary, as China’s energy industry moves towards a higher quality growth phase, it must embrace innovation and collaboration to meet the evolving demands of the market and ensure sustainable development.
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