Energy development achieves a historic transformation—energy conservation and consumption reduction become the defining melody of our era.
Release date:
2019-07-22
Over the past 70 years since the founding of New China, China's energy sector has undergone tremendous transformation. In the early days of the People's Republic, our energy production was at a very low level, with tight supply-demand dynamics and severe structural challenges. Today, seven decades later, thanks to China's rapid economic growth and the remarkable enhancement of social productivity, the energy landscape has been completely reshaped, achieving globally acclaimed milestones. Energy production has steadily overcome obstacles, enabling leapfrog development, while energy consumption has continuously risen, leading to historic improvements. Since the 18th National Congress of the Communist Party of China, the nation has earnestly implemented the new development philosophy, fully embracing the fresh demands of the new era for energy progress. By strengthening the enforcement of energy-saving and consumption-reduction policies, China's energy sector has made significant strides forward, with a markedly optimized energy structure and impressive results in energy conservation and efficiency gains.
I. Since the founding of New China, energy policies have been continuously improved, effectively propelling the remarkable development of China's energy sector.
Energy is a vital material foundation for human survival and development, an indispensable basic condition for the advancement of modern society, and directly linked to national economic stability, people's livelihoods, and national security. It plays a critical role in fostering national prosperity, enhancing the quality of life for the people, and ensuring long-term social stability and peace.
In the early years following the founding of New China, our country's energy infrastructure was remarkably weak. During the 1950s to the 1970s, energy development received significant attention. From the First Five-Year Plan to the Fifth Five-Year Plan, the nation implemented specific strategies for advancing energy industries such as electricity, coal mining, and oil production, while also emphasizing the efficient and economical use of resources like electricity, coal, and petroleum. Since the reform and opening-up policy was introduced, China has placed greater emphasis on the quality and efficiency of energy development—building upon continuous efforts to enhance energy resource exploration and infrastructure construction. From the Sixth Five-Year Plan through the Fifteenth Five-Year Plan, the country progressively advocated for improving economic returns and energy efficiency, firmly adhering to a balanced approach that combines conservation with development, prioritizing conservation above all else. At the same time, China has been optimizing its energy mix, actively promoting new forms of energy, fostering advancements in energy technology, and striving to boost overall energy utilization efficiency.
Since entering the new century, confronted with increasingly severe resource constraints and growing ecological and environmental challenges, China has steadfastly upheld the fundamental national policy of conserving resources and protecting the environment. We have actively pursued a transformation in our economic development model, continuously stepping up efforts to enhance energy efficiency. Specifically, the energy consumption per unit of GDP has been consistently incorporated as a binding indicator into the Five-Year Plans for National Economic and Social Development during the 11th, 12th, and 13th Five-Year periods. In addition, we have successively introduced comprehensive strategic documents such as the "11th," "12th," and "13th Five-Year" Plans for Energy Development, along with the "Energy Development Strategic Action Plan (2014–2020)" and the "Energy Production and Consumption Revolution Strategy (2016–2030)." Furthermore, specialized plans like the "Energy Technology Revolution Innovation Action Plan (2016–2030)" and the "13th Five-Year Plan for Renewable Energy Development" have been rolled out to guide targeted initiatives. Since the 18th National Congress of the Communist Party of China, in response to new global trends in energy development and evolving dynamics in energy supply and demand, the CPC Central Committee—with Comrade Xi Jinping at its core—has demonstrated visionary leadership by firmly embracing the concept of green development. This has driven forward vigorous efforts in ecological civilization, giving rise to the strategic vision of an "energy revolution." These initiatives have not only charted a clear course and set ambitious goals for China's energy sector but have also propelled the country toward remarkable new achievements in energy development.
II. Energy production has achieved leapfrog development, with its foundational role in ensuring stability continuing to strengthen.
In the early years following the founding of New China, China's energy production capacity was insufficient and relatively low in quality. In 1949, the total energy output stood at just 20 million tons of standard coal. Over the next 70 years of rapid development, China's energy production steadily strengthened—from weak to robust—significantly boosting both its production capacity and overall output levels. Today, China has surged to become the world's largest energy-producing nation, having essentially established an energy production system driven by a diversified mix of coal, oil, natural gas, and renewable energy sources. This robust system has firmly underpinned the country's economic growth and industrial development, playing a critical and reliable foundational role. By 2018, China's total energy output had reached 3.77 billion tons of standard coal[1], representing a remarkable 157.8-fold increase compared to 1949—and an average annual growth rate of 7.6%.
Major energy production sectors have achieved comprehensive growth. In 1949, raw coal output stood at just 30 million tons, but by 2018, it had surged to 3.68 billion tons—representing a remarkable 114.0-fold increase compared to 1949, with an average annual growth rate of 7.1%. Crude oil production, meanwhile, climbed from a mere 120,000 tons in 1949 to 190 million tons in 2018—a staggering 1,574.9-fold rise, reflecting an average annual growth rate of 11.3%. Natural gas output also witnessed extraordinary expansion, rising from 100 million cubic meters in 1949 to 160.27 billion cubic meters in 2018—marking an impressive 22,894.7-fold increase and an average annual growth rate of 15.7%. Finally, electricity generation soared from 4.3 billion kilowatt-hours in 1949 to an astounding 7,111.77 billion kilowatt-hours in 2018, representing a massive 1,652.9-fold increase and maintaining an average annual growth rate of 11.3%.
III. Energy consumption continues to grow rapidly, with ongoing improvements in energy-use conditions and standards.
Over the 70 years since the founding of New China, China's economy has grown rapidly, and people's living standards have steadily improved, leading to a generally robust increase in energy consumption. In 1953, China's total energy consumption was only 50 million tons of standard coal; by 2018, it had surged to 4.64 billion tons of standard coal—an astounding 84.8-fold increase compared to 1953, representing an average annual growth rate of 7.1%.
Per capita energy consumption has significantly increased. In 1953, China's per capita energy consumption was only 93 kilograms of standard coal, but by 2018, it had risen to 3,332 kilograms of standard coal—34.8 times higher than in 1953, representing an average annual growth rate of 5.7%.
The energy consumption elasticity coefficient[2] has been steadily declining. In 1954, China's energy consumption elasticity coefficient reached as high as 3.54, but by 2018, it had dropped to 0.50—3.04 lower than the 1954 figure—and was 0.49 and 0.01 lower, respectively, compared to the average elasticity coefficients observed from 1954-2005 and 2006-2017.
4. The energy structure has been significantly optimized, and the transition toward clean, low-carbon development continues to accelerate.
Over the past 70 years since the founding of New China, as China's total energy supply has steadily grown and expanded, and energy consumption patterns have accelerated their transformation, the country's energy structure has continued to undergo significant optimization and improvement, with the clean and low-carbon transition steadily gaining momentum.
The production structure is gradually shifting toward cleaner energy sources. Influenced by China's unique energy resource endowment—characterized by abundant coal, limited oil reserves, and scarce natural gas—in the early days of the People's Republic of China, coal accounted for as much as 96.3% of the country's total energy production, while crude oil made up only 0.7%, and hydropower contributed 3%. Over the past 70 years, the share of coal has steadily declined amid fluctuations, reaching its lowest point of 69.3% in 2018. Meanwhile, the proportion of crude oil initially rose steadily, peaking at 24.8% in 1976, before gradually declining to 7.2% in 2018. In contrast, the share of clean energy sources such as natural gas, primary electricity, and other renewable energy types has generally continued to increase: natural gas surged from a low of just 0.1% in 1957 to a peak of 5.5% in 2018, while primary electricity and other energy sources climbed from 3.0% in 1949 to an all-time high of 18.0% in 2018.
The structure of energy consumption continues to optimize and improve. Influenced by the characteristics of our resource endowments, coal has consistently accounted for the largest share—over 94.4%—of China's total energy consumption since 1953, though its proportion has generally been declining, dropping from 94.4% in 1953 to a low of 59.0% in 2018. Meanwhile, oil’s share has risen steadily amid fluctuations, increasing from a historic low of 3.8% in 1953 to 18.9% in 2018. Notably, the share of cleaner energy sources such as natural gas, primary electricity, and other renewable energy types has continued to rise overall: natural gas surged from a minimal 0.1% in 1957 to a peak of 7.8% in 2018, while primary electricity and other clean energy sources climbed from 1.8% in 1953 to an all-time high of 14.3% in 2018.
5. Energy efficiency levels have significantly improved, with energy consumption per unit of GDP steadily declining.
Over the past 70 years since the founding of New China, China’s energy technology innovation capabilities have steadily improved, driving rapid advancements in energy technology and equipment. Automation, intelligence, and digitalization have continuously optimized energy systems, significantly boosting energy efficiency. By 2018, energy consumption per unit of GDP had dropped by 43.1% compared to 1953, representing an average annual decline of 0.9%. Looking at the trend of energy consumption per unit of GDP (with GDP calculated using 2018 prices), this figure initially rose steadily from 0.91 tons of standard coal per 10,000 yuan in 1953 to a peak of 2.84 tons in 1960, before gradually declining afterward. After experiencing another uptick starting in the 1970s, it has since maintained a generally steady downward trajectory, reaching its lowest point of 0.52 tons of standard coal per 10,000 yuan in 2018. In terms of the rate of reduction in energy consumption per unit of GDP, the indicator fluctuated considerably before the reform and opening-up policy, with most years showing increases. However, after the implementation of reforms and opening-up, the trend shifted decisively toward consistent declines.
Six, since the "11th Five-Year Plan," energy development has entered a new phase, with remarkable achievements in energy conservation and consumption reduction.
Since the start of the 11th Five-Year Plan, China has placed great emphasis on energy conservation and consumption reduction, introducing a series of policies and measures to promote these efforts. We have continuously strengthened institutional frameworks, mechanisms, legal systems, and capacity-building initiatives aimed at boosting energy efficiency and curbing resource waste. This has enabled us to make substantial progress in key sectors such as industry, construction, and transportation. By accelerating industrial restructuring, phasing out outdated production capacities, optimizing the energy mix, and advancing the development of a resource-efficient society, China has successfully ushered in a new phase of energy development, achieving remarkable results in energy conservation and consumption reduction.
Since the 11th Five-Year Plan, China’s energy production has undergone a profound transformation, shifting rapidly from traditional energy sources to new forms of energy. The driving force behind this transition has moved away from conventional energy and is now increasingly powered by renewable and cleaner energy options. As a result, China’s energy structure is undergoing a major shift—from reliance primarily on raw coal toward greater diversification and increased use of clean energy. Meanwhile, the growth rate of traditional energy sources such as raw coal and crude oil has significantly slowed, leading to a sharp decline in their share of total energy production. From 2005 to 2018, raw coal output grew at an average annual rate of 3.5%, a slowdown of 4.5 percentage points compared to the average growth rate between 1949 and 2005. By 2018, raw coal accounted for 8.1 percentage points less of the nation’s total energy output than it did in 2005. Similarly, crude oil production expanded at an average annual pace of just 0.3%, marking a drop of 13.7 percentage points from its earlier growth trend—and its share of total energy output fell by 4.1 percentage points over the same period. In contrast, cleaner energy sources like natural gas, hydropower, nuclear power, and emerging renewables (including wind, solar, and other alternative energy technologies) have surged ahead, steadily increasing their share of the energy mix. Natural gas production, for instance, has grown at an impressive average annual rate of 9.5%, boosting its share by 2.6 percentage points. Meanwhile, primary electricity and other renewable energy sources have expanded even more dramatically, with output rising by an average of 10.2% per year—resulting in a remarkable 9.6-percentage-point increase in their overall contribution to the nation’s energy supply.
The rapid growth in energy consumption has been effectively curbed, while the trend toward cleaner, lower-carbon energy use has accelerated. Since the start of the 11th Five-Year Plan, China has continuously deepened its energy consumption revolution, driving transformative changes in how energy is used. As a result, the transition to clean, low-carbon energy has significantly sped up, with ongoing optimization of energy structure. Meanwhile, the share of clean, low-pollution energy sources—such as renewables—has further increased, while overall energy consumption has remained under control. From 2005 to 2018, China’s total energy consumption grew at an average annual rate of 4.5%, a slowdown of 1.5 percentage points compared to the 1980–2005 period. Notably, the growth rates of traditional energy sources like coal and oil have decelerated: coal consumption expanded by an average of 3.7% per year, a decline of 2.0 percentage points from the previous average, yet it still accounted for 13.4 percentage points less of total energy consumption in 2018 than in 2005. Meanwhile, oil consumption grew by 5.0% annually on average, though this pace slowed by 0.4 percentage points compared to earlier years, albeit maintaining a slightly higher share of 1.1 percentage point increase. In contrast, demand for cleaner energy sources such as natural gas, hydropower, nuclear power, and new energy types (including wind, solar, and other renewable resources) has surged rapidly, leading to a substantial rise in their overall share: natural gas consumption expanded by an average of 14.8% per year, accelerating by 9.9 percentage points compared to the past, and increasing its share by 5.4 percentage points; meanwhile, primary electricity and other alternative energy sources grew by 9.9% annually on average, with the growth rate picking up by 1.2 percentage points, boosting their share by 6.9 percentage points.
Significant achievements have been made in energy conservation and consumption reduction. Since the 11th Five-Year Plan, driven vigorously by a range of energy-saving and consumption-reduction policies and measures, China has seen an overall downward trend in energy consumption per unit of GDP thanks to the concerted efforts of the entire society. From 2005 to 2018, cumulative energy intensity fell by 41.5%, representing an average annual decline of 4.0%—a rate 3.9 percentage points higher than the average annual reduction observed from 1952 to 2005. These remarkable results underscore the success of China's energy-saving initiatives. During the 11th Five-Year Plan period, the target was to reduce energy consumption per unit of GDP by about 20% by 2010 compared to 2005 levels; however, actual reductions reached 19.3%. Under the 12th Five-Year Plan, the goal was to cut energy intensity by more than 16% by 2015 relative to 2010 levels, with actual progress coming in at 18.4%. Meanwhile, during the 13th Five-Year Plan period, the target was to lower energy consumption per unit of GDP by 15% by 2020 compared to 2015 levels—which had already dropped by 11.4% by 2018, ahead of schedule.
Currently, the global energy landscape is undergoing profound adjustments, and addressing climate change has been placed squarely on the agenda. As a result, the energy governance system is accelerating its restructuring, while a new round of energy revolution is surging forward with great momentum. As China’s economy enters a "new normal," the journey toward energy transformation remains long and challenging. Structural overcapacity in traditional energy sectors continues to be a prominent issue, while the need to enhance both the quality and efficiency of energy development has never been more urgent. Meanwhile, efforts to conserve energy and reduce consumption are facing temporary pressures. To effectively curb overall energy consumption and achieve the goal of cutting energy intensity per unit of GDP by 15% during the 13th Five-Year Plan period, sustained dedication is still required. The 13th Five-Year Plan period marks the decisive stage for fully building a moderately prosperous society, as well as a critical phase for gathering momentum and accelerating the energy revolution. We must deeply implement the spirit of the 19th National Congress of the Communist Party of China, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We must firmly embrace the development philosophy of innovation, coordination, green growth, openness, and shared benefits, and adhere to the strategic vision of "four revolutions and one cooperation" in energy development. Only then can we vigorously advance the energy revolution, drive high-quality energy growth, build a modern energy system that is clean, low-carbon, safe, and efficient, and elevate ecological civilization to new heights.
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