The energy internet will transform the future industrial landscape.
Release date:
2016-02-16
The energy chain refers to a collection of systems and activities—including the discovery, acquisition, and efficient utilization of energy and its derived technologies. In a sense, the energy internet is the practical application of the energy chain concept. As it transforms the future of industrial development, the energy internet effectively addresses the unique challenge of the inverse distribution between global energy resource centers and load centers. In the coming competition for dominance in the international system, the energy internet will play an exceptionally critical role.
Simply occupying energy resources does not mean a country can fully master the energy chain—what truly matters are technological revolutions and the accompanying innovations in political and economic systems, as these are the keys to unlocking the energy chain. To most effectively discover, harness, and utilize new energy sources, one must inevitably break through various constraints imposed by economic structures, political frameworks, and even ideological barriers.
Historically, the rise of emerging powers has often been accompanied by the emergence of a new generation of energy chains. In today’s geopolitical landscape, control over these energy chains increasingly determines the balance between maritime and land-based power. After OPEC was established in the 1970s, the United States also faced an energy supply crisis. Its heavy reliance on oil compelled the country to turn overseas—particularly to the Middle East—in search of affordable energy resources. Of course, political instability and frequent conflicts in the Middle East have undoubtedly driven up the costs for the U.S. in maintaining its energy infrastructure. Yet, starting from the last decade of the 20th century, the U.S. embarked on a new round of rapid development and eventually became the world’s sole superpower—largely because it managed to secure control over critical global oil-producing regions and vital transportation routes through two Gulf Wars.
Therefore, the premise and conditions for a major structural transformation of the international system lie in the evolving global energy power dynamics—specifically, whether any state (or non-state entity) has gained control over energy chains or key segments within them, enabling it to challenge the existing order. This includes factors such as the discovery of new energy sources, exclusive ownership of energy resources, revolutionary advancements in energy application technologies, widespread adoption of energy innovations, and the resulting increase in socio-economic energy efficiency. Ultimately, a nation that secures a dominant position in the international energy power structure is bound to reshape the global geopolitical landscape—and will, in turn, emerge as the driving force behind transformative changes in the international system.
Questions such as whether the global energy supply chain remains continuous and intact, and whether price fluctuations can be kept within a reasonable range, not only shape the future trajectory of global energy security but also determine the direction of transformation in the international system. The Energy Internet represents the full exploration, secure possession, and efficient utilization of next-generation energy sources—essentially, new forms of energy that will become key components of the evolving energy landscape. From two perspectives—energy-chain dominance (geopolitics) and the effective use of new energy resources (driven by institutional and technological innovation)—competition in the Energy Internet is fundamentally tied to the broader contest of national strength centered on innovative capabilities, as well as the ongoing shift in power dynamics within the international system. In the coming struggle for leadership in the global order, those who master new energy technologies will ultimately reshape the world’s power distribution.
Currently, regions across continents that are rich in renewable energy resources are establishing clean-energy power-generation hubs, and many countries have already formed or are in the process of creating transnational interconnected grids. North America's integrated grid, Europe's interconnected network, and the Russia-Baltic interconnection have already taken shape, while efforts to link up Southern Africa, South America, and other regions are rapidly advancing. Meanwhile, China is also strengthening its grid connections with Russia, Mongolia, Kazakhstan, and Pakistan. Once the supergrid spanning the Eurasian continent comes into being, the "World Island" will once again become the global focal point of strategic competition. Moreover, land-based powers significantly outperform maritime nations in both securing and efficiently utilizing energy supply chains, a dynamic that could fundamentally alter the balance of power among mid-tier nations relative to those dominating the "core region"—potentially reshaping the current geopolitical landscape altogether.
The Energy Internet is a prime example of the application of the green development concept—it not only represents an innovative model of development but also enables decoupling economic growth from carbon emissions. Within the existing framework of the international energy system, striving for leadership in new energy technologies through significant institutional innovation is an essential path for China’s rise on the global energy stage—and the Energy Internet happens to be China’s best choice.
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