Authoritative Release | National Energy Administration: In 2021, the installed capacity of non‑fossil‑fuel power generation is expected to reach approximately 1.1 billion kilowatts.

2021 Guiding Opinions on Annual Energy Work

The year 2021 marks the inaugural year of the 14th Five-Year Plan, the starting point of a new journey toward fully building a modern socialist country, and the centenary of the founding of the Communist Party of China. As such, ensuring the success of this year’s energy development and reform efforts is of paramount importance. At present, both the domestic and international environments are highly complex, and energy security risks cannot be overlooked. Moreover, achieving the goals of peaking carbon emissions and attaining carbon neutrality, and advancing the transition to green and low‑carbon development, remain formidable tasks. To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council and to sustain the drive for high‑quality energy development, these Guiding Opinions have been formulated.

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will comprehensively implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, Fourth, and Fifth Plenary Sessions of the 19th CPC Central Committee; thoroughly carry out the arrangements set forth at the Central Economic Work Conference and in the Government Work Report; adhere to the overarching principle of seeking progress while maintaining stability; ground ourselves in the new stage of development; apply the new development philosophy; foster a new development pattern; uphold a systems‑based approach; and follow the new energy security strategy of “four revolutions and one cooperation.” With high‑quality energy development as our central theme, we will coordinate energy and ecological sustainability, strive to ensure a secure and stable energy supply, accelerate the low‑carbon transformation of the energy sector, advance innovation in energy technologies, deepen reforms of the energy system and mechanisms, and intensify efforts to deliver tangible benefits to businesses and the people, thereby providing robust energy support for the comprehensive building of a modern socialist country.

The main projected targets for 2021 are as follows:

Energy structure: The share of coal in total energy consumption has fallen below 56%. Approximately 200 billion kWh of electricity has been added through power substitution, and the share of electricity in final energy consumption is targeted to reach around 28%.

Supply security. National energy production will reach approximately 4.2 billion tonnes of coal equivalent, with crude oil output around 196 million tonnes and natural gas output about 202.5 billion cubic metres. Installed capacity for non‑fossil‑fuel power generation is targeted to reach roughly 1.1 billion kilowatts.

Quality and efficiency. Energy consumption per unit of GDP will be reduced by approximately 3%. The allocation of energy resources will become more rational, and utilization efficiency will improve significantly. The utilization rates of renewable energy sources such as wind power and photovoltaic power will remain at high levels, and the average annual utilization hours of inter-regional transmission channels will increase to around 4,100 hours.

Technological innovation. The pace of tackling key technological and equipment bottlenecks in the energy sector has accelerated, with effective progress made in achieving independent substitution for critical core technologies, essential equipment, and vital products. In response to the needs of developing new energy models and business formats, a number of new platforms for energy-related scientific and technological innovation have been established.

Institutional reform: The first batch of pilot regions for electricity spot markets will conduct trial operations with longer settlement cycles, and the scope of these pilots will be steadily expanded, further enhancing the market‑based operation of electricity trading. A power market system that seamlessly integrates medium‑ and long‑term, spot, and ancillary services markets will be refined and improved.

Adhering to bottom-line thinking and a problem-oriented approach, we will address shortcomings, strengthen weak areas, and promote transformation, thereby enhancing our capacity to ensure energy supply. We will also intensify analysis and assessment of the energy supply-and-demand landscape to safeguard a secure and stable energy supply.

Strengthen energy forecasting and early warning. Enhance analysis and assessment of supply-and-demand trends for electricity, natural gas, and other energy sources, and, in regions where temporary or regional supply‑demand imbalances are likely to be particularly acute, proactively develop response measures covering resource supply, infrastructure deployment, and demand‑side management. Closely monitor changes in coal supply and demand in Northeast China and the “Two Lakes and One River” region, reinforce coordination among production, transportation, and consumption, and maintain port and power‑plant inventories at appropriate levels. Improve and refine mechanisms for analyzing energy market conditions and convening consultations on emerging, trending, and potential issues, ensuring a precise grasp of industry developments, prioritizing the prevention and resolution of risks and challenges that could undermine China’s energy security, and enhancing the capacity for macro‑level energy regulation.

Further enhance energy storage and transportation capacity. Grounded in the “national unified network,” advance the construction and interconnection of the natural gas trunk pipeline network. Actively promote the development of “ten-billion-cubic-meter‑scale” underground gas storage clusters in Northeast, North China, Southwest, and Northwest China, and ensure the timely completion of a number of major projects under the 2021 oil and gas production–supply–storage–sales system, including pipelines, underground gas storage facilities, and LNG receiving terminals. Raise inventory levels across all stages of coal production, circulation, and consumption.

Strengthen the development of power‑system emergency peak‑shaving capacity. Actively advance the construction of a new type of power system centered on new energy sources, promote the development of robust localized grids in pilot cities such as Beijing, Shanghai, Tianjin, Chongqing, Guangzhou, and Shenzhen, and enhance the capacity for emergency backup and peak‑shaving power generation. Study policy measures and market mechanisms to facilitate the flexibility upgrades of thermal power plants, and accelerate the implementation of flexibility retrofitting for 300,000‑kW‑class and selected 600,000‑kW‑class coal‑fired units. Launch a new round of national medium‑ and long‑term planning for pumped storage hydropower, expedite the completion and commissioning of pumped storage stations such as Changlongshan and Huanggou, and move forward with the approval and commencement of construction on pumped storage projects in Taishun, Fengxin, and other locations. Steadily and orderly advance pilot and demonstration projects for energy storage.

Strengthen the foundation for ensuring energy supply. Promote increased oil and gas reserves and production, maintain robust investment in exploration and development, intensify geological surveys and exploration in key basins and offshore areas, ensure stable output from mature eastern oilfields, and accelerate capacity-building in new regions. Accelerate the development of unconventional resources such as shale oil and gas, tight gas, and coalbed methane. Prevent and resolve overcapacity in refining, and drive industrial transformation and upgrading. Reinforce coal’s role as a safety net, adhere to the principle of “scaling up the large while phasing out the small, enhancing the superior and weeding out the inferior,” and rigorously carry out the classification and disposition of coal mines with an annual capacity of 300,000 tonnes or less. In accordance with the principle of capacity replacement, orderly approve a batch of advanced-capacity coal mines that meet the required conditions. Steadily advance demonstration projects for the high-quality upgrading of the coal-to-oil-and-gas industry. Implement the national strategy for regional coordinated development, and systematically advance the construction of inter‑regional and inter‑provincial power transmission channels.

Improve the power‑sector safety risk management and control system. With a focus on ensuring power supply security for the celebrations marking the 100th anniversary of the founding of the Communist Party of China, we will vigorously implement the special action plan for power‑sector safety risk management, earnestly enforce the “quarterly meetings and weekly reporting” oversight mechanism, and establish a quantifiable comprehensive evaluation framework for safe power production. Conduct safety risk assessments of critical energy infrastructure and strengthen source‑level control over major risks. Enhance the cybersecurity safeguards of power monitoring systems, carry out emergency response drills, and refine emergency preparedness plans to ensure foolproof power supply for key users and major events.

We will thoroughly implement China’s goals of peaking carbon emissions and achieving carbon neutrality, advance a revolution in energy production and consumption, promote high-quality development of renewable energy, substantially increase the share of non-fossil energy in total consumption, cap the overall consumption of fossil fuels, focus on improving energy efficiency, and continuously optimize the energy mix.

Vigorously develop non‑fossil energy sources. Formulate and issue a set of policies to promote the high‑quality development of new energy in the new era. Issue the “Notice on Matters Related to the Development and Construction of Wind and Photovoltaic Power in 2021,” under which wind and photovoltaic power generation accounted for approximately 11% of total electricity consumption across society in 2021. Steadily advance the planning and construction of hydropower stations in major river basins, and bring the first batch of generating units at the Baihetan Hydropower Station online as scheduled. On the premise of ensuring safety, actively and orderly develop nuclear power. Accelerate the early completion and grid connection of qualified concentrating solar power demonstration projects. Study the launch of geothermal power generation demonstration projects in Tibet and other regions. Proceed in an orderly manner with the development and utilization of biomass energy, and expedite the demonstration of cellulosic and other non‑grain‑based biofuel ethanol industries.

Enhance the capacity to absorb clean energy. Issue the 2021 renewable energy power consumption responsibility targets for each province, autonomous region, and municipality, and strengthen evaluation and assessment. Improve and refine the electricity market mechanisms for clean energy integration, actively promoting new models and applications for local and nearby consumption. While ensuring grid security, advance integrated development of power generation, transmission, distribution, load management, and energy storage, as well as complementary use of multiple energy sources; increase the transmission capacity of power corridors for delivering new energy; and raise the share of clean power received in the central and eastern regions. Accelerate construction of ultra-high-voltage DC transmission lines such as Shaanbei–Hubei and Yazhong–Jiangxi, expedite key projects like Baihetan–Jiangsu and the Fujian–Guangdong interconnection, and move forward with preparatory work for the Baihetan–Zhejiang UHV DC project. Further optimize the layout and structure of the main grid framework, enhancing inter-provincial power mutual assistance capabilities. Promote industrialization and large-scale demonstration of new energy storage technologies, fostering innovation in storage equipment and business models. Refine the demand-side response mechanism, guide market participants to improve time-of-use trading mechanisms, and appropriately regulate peak–valley price differentials.

Promote the clean and efficient use of energy. Strengthen and refine the dual-control system for total energy consumption and energy intensity, appropriately allocate dual‑control targets, and rigorously enforce accountability for achieving these goals. Deepen efforts to cap total coal consumption, intensify controls on loose coal, and advance the clean and efficient utilization of coal. Vigorously promote high‑efficiency, energy‑saving technologies; support energy‑conservation upgrades in traditional sectors; advance the formulation and revision of energy‑efficiency standards; and drive improvements in energy efficiency across key industries and in the new‑infrastructure sector. Actively expand integrated energy services, bolster energy‑efficiency management, accelerate the development of charging and battery‑swap infrastructure, and implement electricity‑substitution initiatives tailored to local conditions. Substantially promote electrification as a substitute for coal and oil, and steadily advance the substitution of gas with electricity, thereby raising the level of end‑use electrification.

We will thoroughly study and implement Xi Jinping’s Thought on Ecological Civilization, uphold the principles of prioritizing ecology and pursuing green development, ensure that those responsible for a given sector also assume responsibility for environmental protection, coordinate and advance the balanced development of energy and resource exploitation with ecological and environmental conservation, and continuously promote a green, low‑carbon transformation of the energy sector.

Fully leverage the guiding role of planning and the driving force of policies. Strengthen strategic planning, emphasizing energy development goals and tasks aligned with ecological and environmental protection, and clearly define targets for optimizing and adjusting the energy structure. Enhance the coordination between energy planning and sector-specific plans—such as those for land use and ecological conservation—as well as with the dual‑control policy on energy consumption. Resolutely support the battle against pollution by bolstering the development of green standards and green technologies in the energy sector, ensuring effective implementation of ecological and environmental safeguards in energy resource development and major infrastructure projects, and promoting green production.

Strengthen ecological and environmental protection in coal mining. Coordinate the planning of coal development with ecological and environmental conservation, and advance the implementation of the “Notice on Further Strengthening Environmental Impact Assessment Management for Coal Resource Development,” issued by the Ministry of Ecology and Environment and other departments. Standardize EIA management for overall mine‑area planning, optimize EIA procedures for coal‑mine projects, and ensure green development in accordance with EIA approval requirements. Urge coal‑mining enterprises to strictly comply with relevant environmental protection regulations regarding gangue disposal, forest‑land occupation, and land reclamation, and to organize production in full compliance with laws and regulations. Actively promote advanced practices in backfilling mining, and encourage coal enterprises to adopt backfilling technologies tailored to local conditions.

Continuously optimize the spatial layout and capacity structure of coal-fired power generation. Strengthen the implementation of local responsibilities, formulate plans for shutdowns and consolidation, and, through measures such as decommissioning and demolition, upgrading and retrofitting, and maintaining emergency standby capacity, complete the closure and integration of outdated small coal‑fired cogeneration units with a capacity of 300,000 kW or more that serve heating loads within a 15‑kilometer radius in key regions. Tailor policies to local conditions to refine the layout and structure of coal‑fired power, steadily and orderly advance the construction and commissioning of coal‑fired power projects supporting transmission corridors, strictly limit new coal‑fired capacity additions in eastern regions and key areas for air pollution control, and appropriately and rationally plan for supportive coal‑fired capacity. Continuously promote energy‑saving and emission‑reduction upgrades of coal‑fired power plants.

Uphold innovation-driven development, intensify efforts to overcome technological bottlenecks in energy‑related equipment and core components, elevate the modernization of industrial and supply chains, and build an independent and self-reliant energy technology system.

Strengthen efforts to tackle key scientific and technological challenges in the energy sector. Develop and implement strategic plans for breakthroughs in critical technologies related to high‑proportion renewable energy systems and the clean, efficient utilization of coal, with dedicated funding and priority support. Establish and institutionalize a “challenge‑based recruitment” mechanism, focusing on ensuring the security and stability of industrial and supply chains, and advance research on bottleneck technologies and equipment in the energy field. Accelerate the R&D and application of core nuclear‑power technologies. Targeting the strategic priorities of oil and gas exploration and development, we will continue to implement major national science and technology projects in this area.

Improve the energy‑related science and technology innovation system. Strengthen the evaluation and performance assessment of existing national energy R&D and innovation platforms, and optimize the management of existing resources. In light of emerging fields—such as hydrogen energy, energy storage, and the integrated development of digital technologies with the energy sector—and other critical areas where industrial development is urgently needed, explore the establishment of additional innovation platforms. Promote the demonstration, deployment, and wider application of first‑of‑a‑kind technological equipment. Enhance the standardization management mechanisms within the energy industry, and build a technology‑innovation system that places enterprises at its core, is market‑oriented, and fosters deep integration among industry, academia, and research institutions.

Enhance the modernization of the energy industry chain. Advance the digital and intelligent transformation of the energy sector, actively promoting smart‑technology initiatives across coal mines, oil and gas fields, pipeline networks, power grids, and power plants. Foster synergistic development between smart energy systems—such as distributed energy, microgrids, and multi‑energy complementary systems—and smart cities and industrial parks. Explore the widespread application of new technologies and equipment, including the BeiDou Navigation Satellite System, 5G, and blockchain, in the energy sector. Launch pilot projects for the hydrogen energy industry, investigating diverse technological pathways and deployment scenarios.

We will continue to optimize the business environment, strengthen efforts to ensure reliable energy supply for people’s livelihoods, extend energy services further to underdeveloped regions, and earnestly align the consolidation and expansion of poverty‑alleviation achievements with rural revitalization in the energy sector.

Continuously optimize the business environment. Ensure effective implementation of the Regulations on Optimizing the Business Environment and replicate and scale up proven reform practices. Establish and improve a long-term mechanism for enhancing the business environment in the tendering and bidding sector, consolidating and building upon the achievements of the targeted campaign to improve the business climate in this area. Implement the Opinions on Comprehensively Upgrading the Level of “Access to Electricity” Services and Continuously Optimizing the Business Environment for Power Use, and roll out the “Three Zeros” and “Three Savings” services nationwide. Deeply advance the “separation of licenses and permits” reform and fully implement the notification‑and‑commitment system for licensing qualifications in the power sector.

Step up efforts to promote clean heating. Implement clean‑heating upgrades tailored to local conditions, establish and refine a comprehensive policy framework for clean heating, ensure the safe and reliable operation of heating systems, and raise the clean‑heating penetration rate in northern regions to 70 percent. Conduct research and explore clean‑heating options in southern China; in the Yangtze River Basin and other developed areas in the south, prioritize market‑based approaches, develop clean heating on a case‑by‑case basis, and foster enterprises engaged in product manufacturing and service provision. Furthermore, advance clean‑heating retrofitting in the high‑altitude, cold regions of southwest China, strengthen policy support, and intensify infrastructure development, including power grids and natural gas pipeline networks.

Improve rural energy access. Implement the Rural Power Grid Consolidation and Upgrade Project, setting differentiated targets for the eastern, central, and western regions, with a focus on supporting poverty‑alleviation areas to address shortcomings in rural power grids. Strengthen efforts to address low voltage and frequent power outages in rural areas, and carry out necessary upgrades. Promote the use of clean energy in rural areas in line with local conditions. Coordinate with and guide local authorities in managing asset administration, operation and maintenance, revenue distribution, and subsidy disbursement for photovoltaic poverty‑alleviation projects.

Enhance the level of smart grid development in urban areas. In line with the “integrated source‑grid‑load‑storage” approach, continue to advance the construction of smart grids in urban settings, promote the high‑quality development of electric vehicle charging and battery‑swapping infrastructure, and accelerate the deployment of demand‑response electricity systems to accommodate the diversified integration of high‑proportion renewable energy sources and electric vehicles. Furthermore, steadily push forward the development of smart grids in key regions, including the Guangdong–Hong Kong–Macao Greater Bay Area, the Shenzhen Pilot Demonstration Zone for Socialism with Chinese Characteristics, and the Yangtze River Delta Integrated Development Area.

We will uphold the rule of law and standardization in energy-sector governance, strengthen the roles of legislation, planning, reform, standards, and regulation, continuously improve the institutional framework for energy governance, elevate the level of energy governance, and vigorously advance the energy revolution.

Improve the legal framework and standards system. Accelerate the formulation and revision of the Energy Law, the Electricity Law, the Coal Law, the Petroleum Reserve Regulations, and the Energy Regulation Regulations. Deepen efforts related to antitrust enforcement and fair‑competition reviews. Issue and implement the 14th Five‑Year Plan for a Modern Energy System, along with sector‑specific energy plans, and develop implementation schemes to ensure their orderly execution. Implement the regional coordinated development strategy by studying and drafting the Yellow River Basin Energy Transition Plan and the Xinjiang High‑Quality Energy Development Implementation Plan, among others. Put into practice the “Guiding Opinions on Accelerating the Establishment of a New‑Type Standards System in the Energy Sector,” build an information‑based service platform for energy standards, promote the public disclosure of industry standards, and strengthen full‑life‑cycle management and services.

Accelerate reforms in key areas. Further expand the scale of electricity traded on the market. Launch pilot programs in the first batch of electricity spot‑market regions to conduct trial operations with longer settlement cycles, and steadily broaden the scope of these spot‑market pilots. Continue to promote the independent and standardized operation of power‑trading institutions and the implementation of incremental distribution pilot projects. Actively advance peer‑to‑peer electricity trading for new energy sources, enabling local consumption. Orderly liberalize competitive services such as grid‑related design and construction. Develop regulations governing pipeline network dispatch and operations—including systems for capacity allocation and shipper access—and advance the fair and open access of oil and gas pipelines in an orderly manner. Steadily push forward the development of oil and gas trading platforms. Successfully carry out the Shanxi Comprehensive Energy Revolution Reform Pilot and the Hainan Comprehensive Energy Reform initiatives.

Strengthen regulation of the energy sector. Implement the “Guiding Opinions on Enhancing Follow-up Supervision of Matters Whose Administrative Approval Powers Have Been Canceled or Delegated (2020 Edition).” Establish a regulatory mechanism that ensures vertical coordination among the National Energy Administration’s dispatched agencies and horizontal collaboration among provincial energy authorities. Carry out the “2021 List of Key Tasks for Energy Regulation,” intensifying oversight of the implementation of major energy plans and projects, as well as market order. Make the fulfillment of ecological and environmental protection requirements a continuous component of regulatory monitoring. Advance reforms to the regulatory framework for natural monopoly segments such as power grids and oil and gas pipeline networks, and strengthen supervision in areas including plan implementation, fair access, operational scheduling, pricing and cost management, and social responsibility.

Upholding the principle of mutual benefit and win-win outcomes, leveraging China’s robust market advantages, we will deepen pragmatic cooperation across the energy industry and supply chains, advance a higher‑level opening-up, and strive to ensure energy security in an open environment.

Deepen infrastructure connectivity and industrial capacity cooperation. Adhering to the principles of extensive consultation, joint contribution, and shared benefits, and upholding the vision of green development, openness, and integrity, we will advance high-quality energy cooperation under the Belt and Road Initiative. We will promote interconnectivity of energy infrastructure with neighboring countries, focusing on key countries and priority projects, and pursue cooperation in power, oil and gas, new energy, nuclear power, and other sectors, guided by the goals of high standards, tangible benefits for people’s livelihoods, and sustainability. We will also expand space for energy cooperation with developed countries, encourage enterprises to engage in market‑based partnerships, and strengthen bilateral and third‑party market collaboration.

Strengthen technological exchange and cooperation. Deepen China–EU collaboration on energy‑related technological innovation in areas such as smart energy, hydrogen energy, wind power, and energy storage, and advance the implementation of a number of pilot demonstration projects. Leverage the locational advantages of different regions, deepen regional and subregional cooperation, enhance exchanges and cooperation with international energy organizations, intensify joint research, and expand overseas training and exchange programs.

Prevent and defuse major risks. In light of epidemic prevention and control measures and evolving global conditions, strengthen analysis and forecasting of the international energy market, promptly formulate response strategies, and mitigate significant risks. Coordinate efforts to ensure both epidemic prevention and production‑construction at overseas projects, employ diverse measures to alleviate difficulties faced by Chinese‑invested enterprises and projects abroad, and firmly safeguard the legitimate rights and interests of Chinese companies operating overseas.

The energy authorities of all provinces, autonomous regions, and municipalities directly under the central government, the branch institutions of the National Energy Administration, and relevant energy enterprises shall, in accordance with these guiding opinions and in light of the specific conditions of their respective regions and enterprises, adopt robust and effective measures to ensure the thorough implementation of all tasks, advance the low-carbon transformation of the energy sector and high-quality development, and provide stable and reliable energy security for the comprehensive building of a modern socialist country.