China's Energy Law Sets Stage for Renewables Priority

27 Mar.,2025

In a significant development for China's energy policy, officials from the National Energy Administration provided insights into the "Energy Law of the People's Republic of China" during a press conference on December 2-3.

 

From NEA

 

In a significant development for China's energy policy, officials from the National Energy Administration provided insights into the "Energy Law of the People's Republic of China" during a press conference on December 2-3. They addressed key issues such as the planning and working mechanisms established by the law, its future role, and its guidance for energy regulation. The "Energy Law of the People's Republic of China," passed on November 8, is set to take effect from January 1, 2025.

Amidst the global focus on achieving "dual carbon" goals—peaking carbon emissions and carbon neutrality—green and low-carbon development has become a central theme. Officials emphasized that accelerating the energy transition and ensuring sustainable energy use is now a global imperative. The Energy Law enshrines the green and low-carbon transformation of energy as a legislative goal, establishing a comprehensive system for this transition, which is pivotal for fostering a green and low-carbon development model.

The law outlines three key measures:The establishment of medium- and long-term development targets for non-fossil energy, with the aim of increasing its share to approximately 25% by 2030 and over 80% by 2060. This target is now backed by legal force, ensuring China's commitment to achieving its carbon peak and neutrality goals.

The introduction of a minimum share target system for renewable energy consumption, which will guide provincial regions to set their own minimum renewable energy consumption targets and ensure their implementation. The law also mandates the improvement of the renewable energy electricity consumption guarantee mechanism and defines the responsibilities of consumption entities. This elevates the minimum renewable energy consumption target and the electricity consumption guarantee mechanism to a legal framework, laying a solid foundation for prioritizing renewable energy development.

The creation of a green energy consumption promotion mechanism, including the implementation of a renewable energy green electricity certificate (Green Certificate) system. Incorporating the Green Certificate system into the Energy Law enhances its authority and uniqueness, fully recognizing the environmental value of green electricity and promoting its role in leading green energy consumption, supporting the green and low-carbon transformation of energy, and facilitating comprehensive green and low-carbon development in the economy and society.

Looking ahead, the official stated, "We will diligently implement the Energy Law's requirements, expedite the revision of the Renewable Energy Law, and deeply embed the renewable energy target system. We will effectivelyreinforce renewable energy electricity consumption responsibilities, build a high-quality Green Certificate market, and establish a green electricity consumption mechanism that combines mandatory and voluntary consumption. This will accelerate the green and low-carbon transformation of energy and better support the formation of a green and low-carbon production and lifestyle across society."

Furthermore, the Energy Law stipulates the acceleration of constructing a new type of power system with institutional arrangements at every stage, from generation to storage. On the supply side, the law balances development and security, setting principles for various power sources to ensure energy supply and drive transformation. It supports the rational布局 of coal-fired power generation to further shift it towards supportive and regulatory roles within the power system. On the demand side, the law advocates for demand-side management, leveraging electricity pricing to guide energy consumption behavior. It encourages users to actively participate in demand-side responses, tapping into the potential of industrial, commercial, and residential users to contribute to system regulation and enhance the security and stability of power supply.