China's NDRC Outlines Strategy Behind Power Grid Stability and Energy Security

In a press conference on July 31, 2026, China's National Development and Reform Commission (NDRC) detailed the structural policy pillars supporting domestic electricity stability amid global energy market volatility. NDRC spokesperson Jiang Yi cited four main factors: baseline thermal power paired with rapid green energy adoption, structural energy efficiency gains, a nation-spanning ultra-high voltage grid and pipeline network, and diversified foreign supply corridors. The agency also highlighted targeted consumer price interventions implemented during global oil price surges.

Amid global energy volatility driven by geopolitical tensions, China's ability to maintain power stability during peak summer demand illustrates its dual-track strategy: relying on domestic coal reserves to prevent blackouts while rapidly scaling renewables to reduce long-term exposure to imported fossil fuels.

At a press conference on July 31, 2026, National Development and Reform Commission (NDRC) spokesperson Jiang Yi detailed how China maintained grid stability and residential energy access—termed locally as "air-conditioning freedom"—despite ongoing geopolitical volatility in international oil and gas supply chains, according to People's Daily. Jiang attributed the country's energy resilience to four key structural pillars spanning supply, demand, infrastructure, and international trade. On the supply side, China built the world's largest clean coal power supply system while expanding renewable capacity, with green electricity now accounting for nearly 4 out of every 10 kilowatt-hours of total power consumed. Domestic crude oil production remained above 200 million metric tons, and natural gas output grew by more than 10 billion cubic meters annually for nine consecutive years, state media reported. On the demand side, energy intensity declined as energy efficiency initiatives took effect. Since the 18th National Congress, China supported average annual economic growth of approximately 6% with an average annual energy consumption growth rate of roughly 3.3%. New energy vehicle market penetration rose from 5% at the end of the 13th Five-Year Plan to 48% by the end of the 14th Five-Year Plan, while non-fossil energy consumption surpassed petroleum for the first time last year, according to the NDRC. Infrastructure and market mechanisms provided physical and operational support. China constructed the world's largest hybrid AC/DC power grid and expanded long-distance oil and gas pipelines to a combined length equivalent to five times the equator's circumference. Internationally, four major energy import corridors across over 100 countries and regions helped diversify supply risks. Furthermore, during sharp spikes in global oil prices in March, domestic price stabilization mechanisms capped refined oil price increases at roughly 50% of formulaic adjustments over two consecutive rounds to cushion impacts on businesses and households. Looking ahead, the NDRC plans to roll out implementation details for the 15th Five-Year Plan for a new energy system, prioritizing coal as a baseline guarantor alongside expanded non-fossil capacity.