Developing new energy is a crucial task for improving the energy structure, ensuring energy security, and promoting ecological progress. General Secretary Xi Jinping emphasized that since the 18th National Congress of the Communist Party of China, my country has accelerated the construction of a new energy system and continuously strengthened its energy security foundation, providing strong support for economic and social development. At the same time, we must also recognize that my country's energy development still faces a series of challenges, including immense demand pressure, numerous supply constraints, and the arduous task of transitioning to a green and low-carbon economy. The solution to these challenges lies in vigorously developing new energy. We must coordinate the development of new energy with national energy security, prioritize planning, strengthen top-level design, and ensure a balanced approach. We must pay attention to the relationship between new energy and traditional energy, the overall and local, the government and the market, and energy development and conservation, and promote high-quality development of new energy. General Secretary Xi Jinping's important speeches and instructions have charted the course and provided fundamental guidance for ensuring my country's energy security, promoting energy transition, and accelerating the development of new energy. The Party Leadership Group of the National Energy Administration, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, has thoroughly studied and implemented the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee, thoroughly implementing the new energy security strategy, and promoting the larger-scale and higher-quality development of new energy, providing safe and reliable energy for China's modernization drive and making greater contributions to building a clean and beautiful world.
my country's new energy development has achieved historic achievements and realized historic changes
General Secretary Xi Jinping pointed out that China has built the world's largest and fastest-growing renewable energy system and established the world's largest and most complete new energy industry chain. This achievement is the result of the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core. The National Energy Administration has resolutely implemented the decisions and deployments of the Party Central Committee and the State Council, driving my country's historic transition from a major new energy power to a powerful new energy nation.
New energy is the main force driving energy transformation. Achieving the "dual carbon" strategic goal is a challenging task, with energy being the primary battlefield. New energy is both the vanguard and the main force. As of the end of August this year, China's total installed capacity of wind and solar power generation exceeded 1.69 billion kilowatts, more than three times the level at the end of the 13th Five-Year Plan. They contributed 80% of the new installed capacity since the 14th Five-Year Plan. The proportion of wind and solar power generation has steadily climbed to a new level, increasing by an average of 2.2 percentage points annually. Against the backdrop of rigid growth in total energy consumption, new energy, as the main force in replacing incremental energy consumption, has strongly supported the average annual increase of approximately 1 percentage point in the proportion of non-fossil energy consumption in China since the 14th Five-Year Plan, reaching 19.8% in 2024, laying a solid foundation for achieving carbon peak before 2030 as scheduled.
New energy is a new pillar for ensuring energy security. Since the 18th National Congress of the Communist Party of China, my country's new energy industry has continuously driven technological innovation and product iteration through rapid expansion and open competition, achieving rapid cost reductions. Onshore wind power has seen cumulative cost reductions of over 60%, and photovoltaic power generation has seen cost reductions of over 80%. The average cost per kilowatt-hour of electricity from new energy is now 30% lower than that of coal-fired power, with peak hours (when electricity consumption is concentrated) representing a low point for electricity prices. Against the backdrop of recent global primary energy supply and demand tensions and significant fluctuations in fossil fuel prices, the large-scale development of new energy has effectively mitigated the impact of turbulence in the international energy market and the drastic changes in the external environment on my country. It has made a significant contribution to enhancing the resilience of my country's energy supply, stabilizing energy and electricity costs across society, and ensuring the needs of economic and social development.
New energy is a new driver of economic and social development. It is a crucial component of building a modern industrial system, creating significant investment and employment opportunities. By 2024, investment in key new energy projects nationwide will total approximately 1.2 trillion yuan, accounting for over 50% of investment in key power sector projects and over 2% of national fixed asset investment. In some resource-rich provinces and regions, new energy power generation and equipment manufacturing contribute over 20% of fixed asset investment. Driven by the rapid development of new energy, diversified regulation and storage technologies such as new-generation coal-fired power, pumped hydro storage, and new energy storage are rapidly developing. Innovations in ultra-high voltage flexible direct current transmission technology are being applied, and the intelligent transformation of power grid infrastructure and the construction of smart microgrids are accelerating, leading to the emergence of new high-quality productive forces.
New energy is a new engine driving international cooperation. my country's new energy industry has forged its strengths through open competition. Its industrial chain is the largest and most comprehensive in the world, and its equipment development technology is world-leading. This not only enriches global supply but also makes significant contributions to the international community's response to climate change and the global green energy transition. my country's wind power and photovoltaic products will reduce global carbon dioxide emissions by approximately 2.65 billion tons by 2024. Recent disruptions to the global clean energy supply chain have heightened international expectations for my country's role in global climate leadership. New energy has become a key enabler for my country to reshape global energy governance and lead the development of a renewable energy cooperation system.
Overall, my country's new energy has achieved leapfrog development from small to large and from large to strong, and has become an important force in ensuring national energy security, a leading force in promoting energy transformation, a backbone force in supporting high-quality economic and social development, a cutting-edge force in cultivating and forging new quality productivity, and a dominant force in leading international cooperation.
Accurately grasp the new situation and new requirements of new energy development, and further stimulate new momentum for high-quality development
This year marks the conclusion of the 14th Five-Year Plan and the planning and layout of the 15th Five-Year Plan. my country's new energy development has achieved remarkable results, exceeding the goals and tasks of the 14th Five-Year Plan, laying a solid foundation for a good start to the 15th Five-Year Plan. General Secretary Xi Jinping put forward requirements for planning the goals and tasks of various aspects of economic and social development during the 15th Five-Year Plan period, "We must make overall plans, grasp the key and decisive factors, grasp the rhythm and progress, focus on consolidating and expanding advantages, breaking through bottlenecks, strengthening shortcomings and weaknesses, and improving quality and efficiency." At present, my country's new energy development is at a critical stage of breaking through external constraints, consolidating endogenous driving forces, and innovating development models. We must accurately grasp the new situation and new requirements, and promote the development of the industry to achieve a leap in quality and efficiency, which is specifically manifested in "three persistences" and "three transformations."
In terms of development, we must prioritize both electricity and non-electricity, promoting the shift of renewable energy from single-source electricity consumption to the integrated utilization of multiple energies. With the continued rapid growth of renewable energy installed capacity, the pressure on power system regulation and absorption is also increasing. From January to July 2025, the national wind power utilization rate was 93.8%, a year-on-year decrease of 2.5 percentage points, and the national photovoltaic power generation utilization rate was 94.7%, a year-on-year decrease of 2.4 percentage points. Faced with the contradictions of limited local absorption capacity in resource-rich regions and increasing constraints on large-scale long-distance transmission and absorption, expanding non-electrical utilization of renewable energy is necessary to alleviate grid absorption pressure and overcome bottlenecks in the absorption of renewable energy power. It is also an inherent requirement for further promoting safe and reliable substitution of renewable energy and creating a new era of high-quality development. Currently, the scale of non-electrical renewable energy utilization accounts for less than 1% of total national energy consumption. Further efforts are urgently needed to address challenges such as high investment costs, immature technology and equipment, insufficient downstream demand, and an inadequate statistical and accounting system, achieve scale breakthroughs, and open up broader space for the development and utilization of renewable energy.
In terms of development methods, we will adhere to diversified integration and promote the transformation of new energy development from "individual combat" to integrated applications. In response to new circumstances and demands, the development model of new energy is accelerating towards integrated applications. Various new technologies, models, and business formats are emerging, helping to enhance the allocation capacity and utilization efficiency of new energy resources and improve the local consumption of new energy. Specifically, these technologies are manifested in the following ways: First, multi-energy integration. Multi-energy conversion technologies, such as green electricity hydrogen-ammonia production, are being explored and demonstrated at an accelerated pace. There is also ample room for green fuel substitution in fields such as gas-fired power generation with hydrogen and coal-fired power generation with ammonia, as well as in the chemical, transportation, and metallurgical industries. Second, resource integration. The green electricity direct connection policy has initially built a bridge that allows new energy sources to "meet" users directly. As relevant mechanisms continue to improve and supporting technologies mature, the application scope of similar models is expected to continue to expand. Third, the aggregation of advantages. The standardized development of new business formats such as virtual power plants and smart microgrids will help fully tap into and leverage the advantages of distributed resource aggregation, enhancing the ability of new energy sources to participate in the optimized operation of the power system and power market transactions. Fourth, the synergy of benefits. Combined utilization methods, such as photovoltaic sand control and agricultural photovoltaic complementarity, not only provide clean electricity but also have multiple benefits such as ecological restoration and increased production and income.
Regarding development momentum, we must adhere to market-driven approaches and promote a shift in new energy development from a resource-oriented to a benefit-oriented approach. Since the 14th Five-Year Plan, with the rapid progress of building a unified national electricity market, the pace of new energy market participation has accelerated, with over half of all renewable energy electricity now priced by the market. Promoting the orderly and comprehensive participation of new energy in the electricity market is an inevitable choice for its high-quality development. During the process of developing and improving the electricity market, new energy sources, affected by the randomness, volatility, and intermittency of their output, have weaker bargaining power in the medium- and long-term electricity markets and the spot electricity market, bearing greater price volatility and revenue risks. Some companies are facing the dilemma of "increased production without increased revenue" and "increased revenue without increased profits." Risks such as downstream electricity prices and revenue may further exacerbate issues such as involuted competition and falling component prices in the upstream photovoltaic industry chain. As my country's new energy development enters a new stage of full marketization, the industry must accelerate its shift from a resource-oriented to a benefit-oriented approach. Hard and soft capabilities, such as cost control, operational efficiency, bidding strategies, and revenue generation, will become key to competitive differentiation for power plants. Cost and price will become the most comprehensive and intuitive benchmark for evaluating the efficiency of industry development.
Focus on expanding quantity and improving quality, and promote the high-quality development of new energy to a new level
The 15th Five-Year Plan is a decisive period for my country to achieve its carbon peak target on schedule. With total energy and electricity consumption nationwide continuing to grow at a high rate, the tasks of ensuring safety and promoting transformation are daunting. Promoting the larger-scale development of new energy is in high demand and presents numerous opportunities. Furthermore, the 15th Five-Year Plan marks the first five years of a new phase of comprehensive market-oriented development for new energy. It also presents a pressing need for the industry to resolve external constraints and internal contradictions, and promote industrial upgrading and adjustment. The impetus and challenges for promoting high-quality development of new energy are unprecedented. Facing this new stage and new journey, we must remain guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the guiding principles of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee, thoroughly study, understand, and implement General Secretary Xi Jinping's important expositions and instructions on energy work, accelerate the development of a new energy system, focus on expanding capacity and improving quality, and elevate the high-quality development of new energy to a new level, ensuring a safe and reliable energy guarantee for China's modernization.
Focusing on power generation and utilization, we will continue to enhance the supply of new energy. Based on energy security and the strategic goals of "dual carbon," we will continue to expand the supply of new energy and steadily increase the proportion of new energy electricity. This will provide the primary support for my country to achieve its carbon peak as scheduled during the 15th Five-Year Plan period, lay a better foundation for the smooth implementation of carbon neutrality, and consolidate the domestic market fundamentals for the sustainable development of the new energy industry. We will coordinate local energy consumption and external energy transmission, accelerate the construction of the second and third batches of large-scale wind and photovoltaic bases, systematically plan the layout of the "Shagohuang" new energy base during the 15th Five-Year Plan period, accelerate the planning and construction of integrated water, wind, and solar bases in the river basin, promote the development of offshore wind power in deepwater and offshore areas in a standardized and orderly manner, and scientifically guide the healthy and orderly development of distributed photovoltaic power.
Focusing on non-electric utilization as a breakthrough, we will broaden the avenues for utilizing new energy. On the one hand, we will promote the large-scale and diversified development of non-electric utilization of traditional new energy sources, such as biomass energy and geothermal energy, based on local conditions. On the other hand, we will intensify efforts to achieve breakthroughs in wind and solar hydrogen production. In areas rich in new energy resources, we will integrate the planning and construction of major bases such as the "Shagohuang" new energy base and offshore wind power bases, strengthen the integrated development of green hydrogen production, transportation, storage, and utilization, and focus on extending the green electricity hydrogen production industry chain and value chain to green hydrogen metallurgy, green synthetic ammonia, green methanol, and green aviation fuel, thereby creating new growth points for the new energy industry.
Focusing on integrated development, we will create an upgraded approach to new energy development. Based on strengthening the deep integration of national strategies, we will comprehensively optimize the layout and development model of new energy development, promoting local and local consumption of new energy through integrated development. By integrating new energy with other energy sources, integrating new energy production and consumption, and integrating the new energy industry chain, we will promote the integrated development of new energy power generation and other industries, transforming the advantages of new energy resources into industrial advantages, and optimizing the layout of productive forces through the layout of new energy.
With coordinated development as the support, we will consolidate the foundation for safe and reliable substitution with new energy. Under the unified guidance of the "dual carbon" strategic goals, we must further address the synergistic relationship between energy supply structure adjustment and energy consumption revolution, the synergistic relationship between accelerated substitution with new energy and the bottom-line guarantee of traditional energy, the synergistic relationship between rapid development of new energy and grid regulation support, and the synergistic relationship between large-scale development of new energy and land environment and other factors, forming a strong policy synergy to support the realization of safe and reliable substitution with new energy.
Driven by efficient development, we will steadily strengthen the internal driving force for high-quality development. We will continuously drive cost reduction and efficiency improvement through technological innovation, orderly promote the renovation and upgrading of older power plants, and improve operational efficiency. We will proactively enhance the reliable output of renewable energy and system adaptability, and improve the ability of new energy power plants to compete in the electricity market. Furthermore, we will accelerate efforts to resolve the temporary supply and demand imbalances in the upstream and downstream of the industrial chain, specifically address the "involutionary" competition in the photovoltaic industry, promote quality upgrades in the photovoltaic industry and other industries, and foster orderly competition and healthy development in renewable energy power generation and related industries.
