President Xi Jinping pointed out, "Accelerating the construction of a clean, low-carbon, safe, and efficient energy system is the main direction of China's energy revolution.
" This important statement has illuminated the path forward for China's energy development in the new era.
 The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, in its "Suggestions," made strategic deployments for accelerating the construction of a new energy system from the perspective of the overall development of Chinese-style modernization, demonstrating the Party Central Committee's far-sighted consideration of balancing development and security.
 The Central Economic Work Conference held at the end of last year proposed, "Deepening energy conservation and carbon reduction transformations in key industries.
 Formulating a plan for building a strong energy nation, accelerating the construction of a new energy system, and expanding the application of green electricity." As a crucial safeguard for promoting green development and fostering new quality productive forces, accelerating the construction of a new energy system provides vital support for economic and social development.
 To thoroughly implement President Xi Jinping's important statements and comprehensively carry out the spirit of the Fourth Plenary Session of the 20th Central Committee and the Central Economic Work Conference, we must focus on accelerating the construction of a new energy system, deeply advancing the energy revolution, expediting the building of a strong energy nation, and providing secure and reliable energy guarantees for Chinese-style modernization.

From the strategic height of national development and security, President Xi Jinping proposed the "Four Revolutions and One Cooperation" energy security strategy, which includes promoting an energy consumption revolution, an energy supply revolution, an energy technology revolution, an energy system revolution, and comprehensive international cooperation.
 This strategy provides fundamental guidance for the construction of a new energy system.
 Currently, facing risks to the global energy supply caused by climate change and geopolitical conflicts, China's energy development still encounters numerous challenges, such as immense demand pressure, numerous supply constraints, and arduous tasks in transitioning to green and low-carbon energy.
 To robustly support China's economic and social development and fortify energy security barriers, we must adhere to systematic thinking, comprehensive deployment, and integrated policy measures to accelerate the construction of a new energy system.

Anchored in the "dual carbon" goals, we should advance the safe, reliable, and orderly substitution of fossil fuels.
 President Xi Jinping emphasized, "Achieving carbon peak and carbon neutrality cannot be accomplished overnight.
 China will take a balanced approach, steadily making progress, and gradually reduce traditional energy sources while reliably substituting them with new energy sources to ensure stable economic and social development." During the "14th Five-Year Plan" period, China has坚定不移 (unwaveringly) promoted high-quality development, accelerating the construction of a clean, low-carbon, safe, and efficient new energy system, effectively safeguarding the energy security of over 1.4 billion people, and achieving remarkable successes in green and low-carbon development that have attracted global attention.
 Currently, China has basically formed a diversified energy supply system driven by coal, oil, gas, nuclear, and renewable energy sources.
 However, from the perspective of the energy supply structure, fossil fuels still account for over 80% and dominate absolutely.
 From the perspective of the energy consumption structure, as of the end of 2024, coal consumption accounted for 53.2% of the total energy consumption, while clean energy consumption increased to 28.6%, indicating a continuous trend towards green and low-carbon energy consumption.

China has become the world's largest energy consumer.
 In the process of accelerating the construction of a modern industrial system, China's energy demand will continue to grow in the medium to long term.
 On the one hand, in 2024, China's dependence on imported oil and natural gas will be approximately 70% and 40%, respectively, and the security of energy transportation corridors is constantly affected by geopolitical conflicts.
 On the other hand, the development of cutting-edge industries such as artificial intelligence, big data, and new energy technologies also poses higher requirements for a secure and stable energy supply.
 Energy security is a matter of national well-being and the people's livelihood, an issue that must never be neglected.
 Facing the "15th Five-Year Plan," we should accelerate the construction of a new energy system with non-fossil fuels as the main supply and fossil fuels as the backup, effectively promoting the coordinated development of energy transition and energy security.

Currently, China's energy supply structure is accelerating its shift from coal dominance to diversification and cleanliness.
 Developing clean energy is an objective requirement and a general trend for strengthening ecological civilization construction and achieving sustainable development.
 During the "15th Five-Year Plan" period, gradually reducing coal consumption, orderly promoting the substitution of scattered coal, and improving the clean and efficient utilization of energy are inevitable paths for accelerating the construction of a new energy system.

The new power system is a key support for building a new energy system.
 By the end of 2025, the total installed capacity of power generation in the country will reach 38.9 billion kilowatts, with an increasing proportion of clean energy generation such as wind, solar, hydro, and nuclear power, continuously raising the proportion of new energy supply, and accelerating the greening of the energy industry, gradually forming a new pattern of clean utilization of traditional energy sources and accelerated substitution by new energy sources.

In the continuous process of promoting the green and low-carbon transformation of traditional industries and facilitating high-quality development of clean energy, we should promote the optimal combination of various energy sources, accelerate the construction of large-scale wind and solar power base projects, actively and steadily advance the implementation of major projects such as hydropower and nuclear power, and proactively plan the development of industries in fields such as hydrogen energy.
 Simultaneously, we should continuously optimize the regional layout of industries, strengthen interregional industrial division and collaboration, promote the matching of industrial layout with energy endowments, enhance the capacity for grid integration and consumption of new energy sources, further strengthen the upgrading and transformation of smart grids, coordinate local consumption and external transmission, reduce energy transmission losses and transportation energy consumption, and continuously improve the efficiency of the entire energy system.

Focusing on technological breakthroughs, we should overcome key energy technology bottlenecks.
 President Xi Jinping emphasized, "We should aim at the forefront of global energy science and technology, focus on key energy areas and major needs, reasonably select technological routes, leverage the advantages of the new national system, strengthen joint research and development of key core technologies, enhance the application and commercialization of scientific research achievements, cultivate energy technology and its related industries into new growth points driving China's industrial upgrading, and promote the development of new quality productive forces." Currently, China has made significant breakthroughs in energy science and technology innovation, with new energy technology equipment leading the world.
 China accounts for over 40% of global new energy patents, with continuously breaking world records in photovoltaic conversion efficiency and offshore wind power unit capacity.
 Furthermore, with the improvement of institutional guarantees and governance mechanisms, the innovation vitality of private enterprises has significantly increased, and their economic potential has been fully unleashed.
 Private enterprises have become an important force driving energy transition and transformation.

Technological innovation is crucial for green and low-carbon transformation.
 Aligning with the trends of the new round of scientific and technological revolution and industrial transformation, we should strengthen the commercialization of energy science and technology innovation achievements, improve the industry-university-research system, further leverage the important role of private enterprises in driving energy technological innovation, accelerate the breakthrough of key energy technology bottlenecks, strengthen shortcomings in key energy technology equipment, fully utilize scaled and industrialized energy technologies to achieve technological equipment breakthroughs and localization substitution, continuously promote the integration of digital and intelligent technologies with the energy industry, and continuously cultivate and expand new quality productive forces in the energy sector, providing a solid foundation for Chinese-style modernization with a clean, low-carbon, safe, and efficient energy system.

Innovating governance methods, we should unleash the combined effectiveness of an efficient market and a proactive government.
 The "Suggestions" of the Fourth Plenary Session of the 20th Central Committee clearly proposed, "Accelerating the establishment of market and price mechanisms adapted to a new energy system." During the "15th Five-Year Plan" period, we should continue to deepen price reforms in the energy sector, construct a more economically efficient energy market system oriented towards green and low-carbon development, and enhance the quality and efficiency of public services.
 We should accelerate the establishment of a unified national electricity market system, improve the joint operation mechanisms of electricity medium- and long-term, spot, and ancillary service markets, optimize the basic rules of the electricity ancillary service market and the trading mechanisms for green certificates and green electricity, and promote green electricity consumption.
 Simultaneously, we should venture into the "deep water zone" of reforms, continuously break down institutional and mechanism barriers that restrict development, organically combine an efficient market with a proactive government, innovate market mechanisms, further optimize the business environment in the energy sector, activate factor potentials, continuously improve market regulation, and construct a new energy regulatory approach and collaborative regulatory mechanism that facilitates the coordinated interplay of multiple energy sources.
 We should better convert institutional advantages and market vitality into governance effectiveness, providing a solid institutional guarantee for accelerating the construction of a new energy system.
 (Author: Li Shuo, School of Economics, Peking University)
Source: People's Daily