China’s New Energy System To Prioritize Efficiency, but There’s No Quick Fix

Key Takeaways

• The plan’s targets for clean energy capacity are achievable, but fossil fuels will still make up three quarters of China’s energy mix through 2030.
• China’s most challenging goal is to more efficiently connect energy supply with demand, with mixed results so far for its AI buildout.
• Market reforms are underway that can cut energy intensive companies’ electricity bills, but so far, they are insufficient to sustain low prices broadly.