China

China Daily | English | News | Dec. 12, 2025 | UndeterminedEnergy Prices

In 2025, China has significantly expanded its power-trading market, allowing enterprises to purchase electricity at market-based rates, which enhances cost control and accelerates the transition to cleaner energy. For example, Xuzhou Shanshan Outlet Plaza reduced its monthly electricity bills by over 70,000 yuan ($9,910) by buying power through the market, while also benefiting from sourcing renewable energy to support low-carbon supply chains. Approximately 23,900 industrial and commercial businesses in Xuzhou participated in the market in 2025, with market-based power consumption reaching 10.2 billion kilowatt-hours in the first half of the year, saving users around 40 million yuan monthly.

China's unified national power market, launched in 2025, facilitates long-distance transmission of renewable energy, such as hydropower from Yunnan and Sichuan provinces, to energy-demanding industrial regions like the Yangtze River Delta. Market-traded electricity increased from 1.1 trillion kWh in 2016 to 6.2 trillion kWh in 2024, accounting for 63 percent of total electricity consumption. The State Grid's trans-provincial transmission capacity reached 370 million kilowatts by November, promoting efficient resource allocation and reliable energy supply amidst varying regional energy endowments.

Jiangsu province has aggressively promoted green power trading, boosting the trading volume from 1.37 billion kWh in 2021 to 20.34 billion kWh in 2024, resulting in reductions of 6.24 million metric tons of standard coal consumption and 15.56 million tons of carbon dioxide emissions. Concurrently, China's combined wind and solar installed capacity surged from 530 million kW in 2020 to 1.68 billion kW by mid-2025, growing at an average annual rate of 28 percent. The growing demand for green electricity includes trade fairs, conferences, and exporters aiming to enhance carbon neutrality and global competitiveness amid increasing carbon footprint awareness.

China Daily | English | News | Dec. 12, 2025 | UndeterminedEnergy Prices

China's domestic crude oil output is expected to reach a record 215 million metric tons in 2025, reflecting the country's strengthened focus on energy self-reliance amid ongoing geopolitical tensions and global supply chain challenges. This growth culminates a period of robust exploration success and steady production increases during the 14th Five-Year Plan (2021-2025), during which China added 105 million tons of new crude oil capacity. Offshore crude oil has driven over 60 percent of new petroleum output for five consecutive years.

Despite rapid development in clean energy, fossil fuels remain critical for energy security and system stability, with over 30 percent of oil and 37 percent of natural gas expected to come from ocean sources. China leads global investment in energy transition, accounting for 39 percent of the over $2 trillion invested worldwide in 2024. In natural gas, China has recorded year-on-year production growth of 10 billion cubic meters for nine straight years, solidifying its position as the world's fourth-largest producer, with output projected at 260 billion cubic meters in 2025—a 35 percent increase since the last five-year plan.

Cumulative proven reserves have increased substantially during the 14th Five-Year Plan, with oil reserves surpassing 7 billion tons and natural gas reserves exceeding 7 trillion cubic meters, marking roughly 40 percent growth compared to the prior period. The national oil and gas pipeline network now extends 195,000 kilometers, promoting a unified national grid. China’s oil and gas sector is entering a new phase of enhanced production efficiency and green development, aiming to establish a secure, resilient, and modernized energy system that supports national energy security and economic stability.

China Daily | English | News | Dec. 12, 2025 | Climate Change

China is advancing its carbon capture, utilization and storage (CCUS) technology to reconcile sustained economic growth with its goal of carbon neutrality by 2060. Facing an energy system heavily reliant on coal and heavy industry, the government and state-owned energy companies are shifting from pilot projects to large-scale industrial CCUS clusters. Beijing has incorporated CCUS into its national 14th Five-Year Plan (2021-25) and updated its technology roadmap, stressing CCUS as essential for the low-carbon use of fossil fuels and overall carbon neutrality efforts.

The National Energy Administration (NEA) has promoted CCUS to transition from experimental stages to industrial demonstration and scaled production through enhanced policy support and technological innovation. The oil and gas sector is operating over 90 CCUS projects, including more than 10 enhanced oil recovery (EOR) initiatives, with annual CO2 injection reaching 4 million tons. As of the end of 2024, China had 126 planned or operational CCUS projects, capable of capturing 6 million tons of CO2 annually, led by energy conglomerates.

Sinopec operates the first million-ton scale CCUS project at its Qilu petrochemical plant, capturing 1 million tons of CO2 per year and injecting it for EOR at the Shengli oilfield. This project provides key engineering experience to support nationwide CCUS expansion. Sinopec views CCUS as critical to upgrading traditional industries and fostering new productive forces, and it aims to collaborate internationally on technology breakthroughs and cluster development. Meanwhile, China National Petroleum Corporation is developing major CCUS hubs in Heilongjiang, Gansu, and Tianjin, integrating emissions from nearby industrial sources.

Globally, CCUS is gaining momentum as an important tool in the energy transition. Although much captured CO2 is currently used for EOR, Chinese state firms are increasingly exploring geological storage in deep saline aquifers, especially near coastal regions, to secure long-term carbon sequestration.