2022 is an important year for embarking on a new journey to build China into a modernized socialist country in an all-round way and march towards the second centenary goal. It is a crucial year for the implementation of the 14th Five-Year Plan and the carbon peaking goal, and it is of critical importance that we do a good job in this year’s energy development and reform work. These Opinions were formulated in order to thoroughly implement the decisions and deployments of the Chinese Communist Party (CCP) Central Committee and the State Council and to continue to promote the high-quality development of energy.

I. Overall Requirements

(i) Guiding Thought

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we should fully implement the spirit of the 19th National Party Congress and each previous plenary session of the 19th Central Committee, thoroughly implement the deployments of the Central Economic Work Conference and the Government Work Report, adhere to the general principle of seeking progress while maintaining stability, fully, accurately, and comprehensively implement the new development concept, accelerate the construction of the new development pattern, adhere to the systems way of thinking, thoroughly implement the new energy security strategy, coordinate energy security and the green and low-carbon transition, fully implement the 14th Five-Year Plan, and thoroughly implement the carbon peaking action plan. Driven by technological innovation and system and institution reform, we should focus on improving the elasticity and resilience of our energy supply, focus on strengthening the clean energy industry, focus on improving the level of modernization of energy production chains, and speed up the construction of an energy superpower so as to welcome the successful convening of the 20th National Party Congress with excellent results.

(ii) Basic Principles

Guarantee supply and strengthen reserves. We should coordinate domestic and foreign energy resources, adapt to changes in the energy market, fully consider possible risks and extreme weather, appropriately make advance deployments of energy infrastructure, increase reserve strength, maintain reasonable margins, and resolve various risks and challenges affecting energy security.

Green development and smooth carbon reduction. We should adhere to the principle of laying the groundwork first (以立为先), make overall plans, accelerate the development of non-fossil energy, consolidate the foundation for safe and reliable new energy alternatives, strengthen the clean and efficient use of fossil energy, promote the optimal mix of coal and new energy, and steadily promote the green and low-carbon development of energy.

Innovation takes the lead, reform empowers. We should enhance energy technology innovation capabilities, firmly grasp green and low-carbon technology research, and accelerate the digitalization and intelligentized upgrade of the energy industry. We should deepen the reform of energy systems and institutions, accelerate the construction of the energy market, and improve the market supervision system. We should actively cultivate new growth points and new drivers.

Serve the wellbeing of the people and share the fruits of development. We should adhere to a people-centered approach, accelerate the construction of energy-related wellbeing assurance projects, continuously optimize the business environment, vigorously raise the standard of energy services, press for the fruits of energy development to more broadly and effectively benefit the people, and provide strong energy assurances for the realization of the people’s yearning for a higher standard of living.

Strengthen early warnings and consolidate responsibility. Strengthen energy supply and demand monitoring, forecasting, and risk prediction in all regions, prepare response plans, consolidate the regional responsibilities of local governments, and the responsibilities of enterprises, in ensuring energy supply, and give full play to the foundational support role of large enterprises in ensuring energy supply. In particular, state-owned enterprises should take the lead in ensuring supply and stable prices.

(iii) Main objectives

Enhance supply assurance capabilities. China’s total energy production should reach about 4.41 billion tons of standard coal, about 200 million tons of crude oil, and about 214 billion cubic meters of natural gas. To ensure sufficient electrical power supply, installed power capacity should reach about 2.6 billion kilowatts, power generation capacity should reach about 9.07 trillion kilowatt-hours, new peak power generation capacity should exceed 80 million kilowatts, and the power transmission capacity of “West-to-East Power Transmission” should reach about 290 million kilowatts.

Make steady progress in structural transformation. The proportion of coal consumption should steadily decline, and the proportion of non-fossil energy in total energy consumption should increase to about 17.3%. New electric energy should replace about 180 billion kilowatt-hours of electricity, and the proportion of wind power and photovoltaic power generation should account for about 12.2% of total societal electricity consumption.

Focus on improving quality and efficiency. The energy consumption intensity target should be considered in an overall manner during the 14th Five-Year Plan period, and should leave room for appropriate flexibility. The average utilization hours of cross-regional transmission channels should be kept within a reasonable range, and the utilization rate of wind power and photovoltaic power generation should constantly be maintained at a reasonable level.

II. Create Firm Foundations for Guaranteeing Energy Supply

Treating guaranteeing the safe and stable supply of energy as our primary task, we should focus on enhancing domestic energy production guarantee capabilities and truly hold the energy rice bowl (能源饭碗, a play on “iron rice bowl” or guaranteed job security) firmly in our own hands.

We should strengthen our ability to guarantee the bottom line on coal and coal power generation. We should coordinate resource continuity and the sustainable development of mining areas, and approve in an orderly manner a batch of high-quality and advanced production capacity coal mines. We should accelerate the construction and commissioning of coal mines currently under construction and promote the transformation of qualified emergency guarantee production capacity into normalized production capacity. Using demonstration coal mines as a guide, we should accelerate efforts to promote the intelligentized construction and upgrading of coal mines. We should deepen the safety transformation of coal mines. We should scientifically plan and construct advanced coal-fired power units, arrange according to need a certain scale of supporting power sources to ensure power supply security and regulated power sources to promote new energy consumption, maintain a reasonable margin of installed capacity, and require that on new projects the latest technical standards on coal consumption and other matters are strictly implemented. We should promote the implementation of support policies on electricity prices, taxes, loans for coal power companies and so on, and encourage coal power companies to transition to “power generation +” comprehensive energy service enterprises and multi-energy complementary enterprises.

We should continue to step up oil and gas exploration and development efforts. We should implement the 14th Five-Year Plan and the implementation plan for oil and gas exploration and development, compact the annual exploration and development investment and workload, accelerate the development and application of advanced oil and gas extraction technologies, consolidate the good momentum of increasing reserves and production, and resolutely achieve the set goals of restoring crude oil production to 200 million tons in 2022 and continuing to steadily increase natural gas production. We should actively stabilize and increase production from the shale gas fields in the Sichuan Basin and promote as quickly as possible the large-scale and profitable development of shale oil. Focusing on the coalbed methane industrial bases in the Qinshui Basin and the eastern margin of the Ordos Basin, we should accelerate exploration and production capacity construction for coalbed methane resources and promote the comprehensive exploration and development of coal measure strata containing multiple gas types. We should steadily promote the construction of coal liquefaction and gasification strategic bases.

We should actively promote the planning and construction of transmission channels. Combined with the planning and development of large-scale wind power and photovoltaic bases mainly in deserts, the Gobi, and wilderness regions and the development situation of power supply and demand, we should actively promote the preliminary work of inter-provincial and inter-regional power transmission channels that already have a clear plan and promptly perform the approval procedures once conditions are met. We should accelerate the construction of ultra-high voltage channels such as Nanyang-Jingmen-Changsha, Zhumadian-Wuhan, Jingmen-Wuhan, Baihetan-Jiangsu, and Baihetan-Zhejiang. We should promote the construction of power grids and power supply projects that support key transmission channels and focus on improving the utilization efficiency of transmission channels and the proportion of renewable energy.

III. Accelerate the Green and Low-carbon Transformation of Energy

We should adhere to the principle of laying the groundwork first, thoroughly implement the requirements of carbon peaking and carbon neutrality, thoroughly implement the 14th Five-Year Plan Renewable Energy Development Plan, vigorously develop non-fossil energy, focus on cultivating new energy industries and new models, and continuously optimize the energy structure.

Vigorously develop wind and photovoltaic power. We should intensify efforts to plan and construct new energy supply and consumption systems based on large-scale wind and solar bases, supported by clean, efficient, advanced, and energy-saving coal power around them, and with stable, safe, and reliable UHV transmission and transformation lines to carry the power. We should optimize the layout of near-offshore wind power, carry out far-offshore wind power construction demonstrations, and carefully promote the construction of offshore wind power bases. We should actively promote the construction of complementary hydro, wind, and solar bases. We should continue to implement the whole-of-county development and construction of rooftop distributed photovoltaics  and strengthen supervision over implementation. We should organize and carry out the “Harness the Wind in Thousands of Villages Initiative” (千乡万村驭风行动) and the “Bathe Thousands of Homes in Light Initiative” (千家万户沐光行动) according to local conditions. We should make full use of the land and roof resources in oil and gas mining areas, industrial mining areas, and industrial parks to develop distributed wind power and photovoltaics. We should improve the assurance mechanism for renewable energy power consumption, publish the weighting of each province’s consumption responsibility in 2022, and improve the green power certificate system for renewable energy power generation.

Advance the construction of major hydropower and nuclear power projects in an orderly manner. We should press ahead with the preliminary work of hydropower development along the lower reaches of the Yarlung Zangbo River, complete and put into operation all the units of the Baihetan and Lianghekou hydropower stations, accelerate the construction of the Mengdigou Hydropower Station on the Yalong River and the Yangqu Hydropower Station on the Yellow River, move forward with the approval of the Xulong Hydropower Station, and see that installed hydropower capacity reaches 410 million kilowatts. We should complete and put into operation Fuqing No. 6, Hongyanhe No. 6, Fangchenggang No. 3, the High-temperature Gas-cooled Reactor Demonstration Projects, and other nuclear power units. Provided safety can be ensured, we should move actively and in an orderly manner to promote the approval and construction of new coastal nuclear power projects.

Actively develop new energy industries and new models. We should accelerate the construction of “Internet+” charging facilities and optimize the layout of the charging network. We should organize the implementation of the Pilot Program for Nuclear Energy Central Heating and Comprehensive Utilization (核能集中供热及综合利用试点方案) and promote the comprehensive utilization of nuclear energy. We should carry out renewable energy hydrogen production demonstrations according to local conditions and explore development routes and commercial application paths for hydrogen energy technology. We should carry out geothermal power generation demonstrations, support medium and high temperature geothermal power generation and dry-hot rock power generation, and actively explore solar-thermal power generation demonstrations as supporting and regulating power sources. We should accelerate ethanol industry demonstrations of cellulose and other non-food biofuels. We should steadily promote the diversified development and utilization of biomass energy. We should vigorously develop comprehensive energy services and promote energy conservation, efficiency improvement, cost reduction, and carbon reduction.

IV. Enhance Energy Supply Chain Elasticity and Resilience

We should adhere to bottom-line thinking and a problems-based orientation, strengthen energy storage and transportation, regulation, and demand-side response capabilities, and effectively ensure a stable energy supply.

Strengthen energy storage and transportation capacity. We should promote the construction of major pipeline network projects such as the southern section of the Sino-Russian East Line, the middle section of the West Third Line, the West Fourth Line, the Second Sichuan-East Gas Transmission Line, and the Longkou LNG-Wen 23 gas storage facility; accelerate the construction of pipeline interconnections to make up for shortcomings and of inter-provincial communication channels; strengthen the protection of oil and gas pipelines; and consolidate the level of operational safety and stability of cross-border oil and gas import channels. We should accelerate construction on coastal LNG receiving stations and gas storage facilities, as well as on projects such as underground gas storage expansion by tens of billions of cubic meters in North China and Northwest China. We should strengthen coal production reserves and build a number of coal reserve bases deployed in coal consumption and distribution centers, rail transport hubs, and key ports.

Accelerate power system regulation capacity building. We should accelerate the construction of main reservoirs, improve the regulation and storage capacity of watersheds, and alleviate the problems in some areas of a lack of electricity during dry seasons and a lack of peak-shaving capacity during flood seasons. We should promote the formulation of mid- and long-term plans and implementation plans for pumped storage in various provinces and the approval of work plans for 14th Five-Year Plan projects, and accelerate the construction of a batch of pumped-storage power stations. Provided we can ensure a stable power supply and meet power demands, we should actively promote the “three reform linkage” (三改联动) of coal-fired power unit energy conservation and consumption reduction transformation, heating transformation, and flexibility transformation. We should implement the 14th Five-Year Plan new energy storage development implementation plan, track and evaluate the first batch of scientific and technological (S&T) innovation (energy storage) pilot demonstration projects, carry out pilot demonstrations centered on different technologies, application scenarios, and key areas, and look into establishing supporting energy storage construction and operation mechanisms for large-scale wind power and photovoltaic bases. We should resolutely promote the construction of solar-thermal power generation projects in large-scale wind power and photovoltaic bases in deserts, the Gobi, and wilderness areas.

Improve energy demand-side response capabilities. We should improve time-of-use electricity prices and peak-valley electricity prices, support the diversified development of user-side energy storage, fully tap into demand-side potential, and guide power users to participate in virtual power plants, peak load shifting, and responding to demand. We should further optimize the management measures for orderly electricity consumption and for “reducing natural gas consumption by non-residents and ensuring residents have the gas they need” (压非保民), strengthen the management of interruptible loads, organize business processes and standards, and implement precisely energy consumption management. We should optimize and improve the main power grid structure, deploy grid-side energy storage at key nodes, improve the level of inter-provincial power complementarity, and encourage users to invest in the construction of smart microgrids that mainly consume new energy. We should make overall plans and make comprehensive use of the capabilities of various source, network, load, and storage entities to make adjustments and plan and construct a batch of source, network, load, and storage integration and multi-energy complementary projects.

V. Raise the Level of Energy Industry Modernization

We should step up research efforts on energy technology equipment and core components, actively promote the digitization and intelligentization upgrade of energy systems, and improve the level of modernization of energy production chains.

Strengthen energy S&T research. We should accelerate the implementation of the 14th Five-Year Plan Scientific and Technological Innovation in the Energy Sector Plan (“十四五”能源领域科技创新规划). We should continue to focus on major nuclear power S&T special projects and the Action Plan for Nuclear Power Technology Improvement (核电技术提升行动计划) and accelerate the development and demonstration of small reactor technology. We should implement a batch of major technological innovation projects using the “unveiling the list” (揭榜挂帅) [open competition mechanism], consolidate the advantages of technologies and equipment for renewable energy and the clean and efficient use of coal, and accelerate breakthroughs in a batch of key technologies for new power systems. We should continue to promote research on technology and equipment shortcomings in the energy field and prioritize giving impetus to research on technology in key areas such as gas turbines, oil and gas, ultra-high voltage (UHV) power transmission, control systems, and chips. We should promote innovations in deep-sea far-offshore wind power technology and the construction of demonstration projects, and explore models for centralized delivery and centralized operation and maintenance. We should accelerate research on key low-carbon, zero-carbon, and negative-carbon technologies such as new energy storage and hydrogen energy.

Accelerate the digitized upgrade of the energy system. We should actively carry out intelligentized upgrades of equipment, facilities, and processing procedures in coal mines, oil and gas fields, pipeline networks, power grids, power plants, and other fields. We should promote the coordinated development of distributed energy sources, microgrids, multi-energy complementarity, and other smart energy sources with smart cities and industrial parks. We should strengthen the promotion and application of new technologies such as the Beidou system, 5G, and national secret algorithms as well as “Internet + security supervision” intelligent technologies in the energy field. We should adapt to the development of digitized, automated, and networked energy infrastructure, build intelligent dispatching systems, and realize source-network-load interaction, multi-energy synergy and complementarity, and intelligent energy demand regulation. We should implement “blockchain + energy” innovative application pilots.

Promote and improve energy innovation support systems. We should carry out action plans for the improvement of carbon peaking and carbon neutrality standards in the energy field and accelerate the construction in the energy field of a carbon peaking and carbon neutrality standard system. We should establish several new innovation platforms centered on the six key areas of new power systems, new energy storage, hydrogen energy and fuel cells, carbon capture, utilization, and storage, digitized and intelligentized energy systems, and energy system security. We should carry out innovation platform optimization and rectification work, to actively undertake national energy S&T innovation tasks. We should carry out the 2022 evaluations on the first sets of technical equipment in the energy field and promote demonstration applications. We should improve policies and measures that leverage projects to promote innovation and demonstration applications of energy technologies and equipment.

VI. Raise the Level of Energy Services

We should keep optimizing the business environment, make overall arrangements to ensure the supply of coal, electricity, oil, and gas transportation, step up the degree of assurances for energy used by the people, and continuously raise the energy consumption standards of society as a whole.

Continue to deepen the reforms to “delegate power, streamline administration and optimize government services” (放管服). We should move forward on the notification and commitment system for licenses in the energy sector and promote the full coverage of the “permit-license separation” (证照分离) reform. We should comprehensively raise the service level of “electricity acquisition” (获得电力) and vigorously promote the “three zeros” (三零) service for residential users and small and micro enterprise users of 160kW and below and the “three saves” (三省) service for high-voltage users. We should issue the Measures for the Administration of Electric Power Reliability (Interim) and promote the in-depth extension of reliability work to planning and construction, equipment manufacturing, operation and maintenance, and other stages. We should optimize services involving enterprises, break through logjams, and create an environment conducive to the development of new industries, new industry formats, and new business models for distributed generation, microgrids, and integrated energy services.

Strive to improve energy use conditions. We should continue to implement rural power grid consolidation and upgrade projects and raise the level of rural grid power supply assurance. We should give full play to the role of renewable energy in heating, continue to promote clean heating in the northern region, and do a good job in the supervision of special projects for clean heating. We should issue guiding opinions on promoting electricity substitution and expand the depth and breadth of electricity substitution. We should further promote the national special initiative to upgrade the quality of refined oil products and ensure the nationwide comprehensive supply of National VI B standard gasoline for vehicles on January 1, 2023. We should raise the level of intelligentization of urban power grids to provide flexible access for distributed power sources, electric vehicle charging facilities, new energy storage, and other diversified loads.

VII. Enhance Energy Governance Capacity

We should strengthen the role of legislation, planning, reform, and regulation, strengthen energy situation monitoring and forecasting, continuously improve the energy governance system, and enhance energy governance efficiency.

Strengthen energy situation analysis and demand forecasting. We should promote the construction of an energy supply and demand analysis system, strengthen the research and judgment on emerging, tendency-type, and potential problems, and improve the reporting mechanisms for energy data and information. We should organize for provinces and regions to carry out on a rolling basis monthly and quarterly energy demand forecasts and for those regions where there might occur time periods or areas in which energy is tight, we should plan countermeasures in advance in terms of resource implementation, infrastructure layout, new production capacity and so on, to ensure a stable energy supply, and prevent major fluctuations in market supply and price.

Strengthen energy regulation. We should deepen the supervision of links where there are natural monopolies such as power grids and oil and gas pipeline networks, step up supervision on fairness and openness, dispatching transactions, prices and costs, contract performance, power grid electricity purchases, and other areas, and strengthen the supervision of the electric coal inventory, unplanned shutdowns, obstructed unit output, and orderly electricity consumption. We should strengthen energy administrative and law enforcement work, improve supervision and law enforcement systems and seriously investigate and punish behaviors such as the “Three Designations” (三指定) in users’ power-consuming projects and the illegal supply of power to virtual currency “mining” projects. We should give full play to the role of the 12398 energy supervision hotline, ensure the openness of Internet and other new channels for complaints and reports, and promptly study and solve prominent problems reported by the people.

Strengthen power security management and control. We should implement the “Four Pillars of Safety” (四个安全) governance concept, build a scientific and quantitative supervision and management index system, carry out on a trial basis the development of standardization in  electric power safety production, promote the research and application of new safety technologies, carry out safety culture building, and create safety audit working mechanisms and training systems. We should deepen the “Quarterly Meetings and Weekly Reports” listed-for-supervision reporting mechanism for categorized electric power safety risk management and hidden danger investigation and governance, advance security risk assessments for major energy infrastructure, strengthen safety risk management and control for DC systems and important transmission channels, carry out supervision on the safety of key projects under construction and new energy power generation projects, and strengthen the investigation and governance of hidden dangers in hydropower dams. We should promote the construction of electricity emergency command centers, situational awareness platforms, and cybersecurity shooting ranges, organize and carry out key information infrastructure security protection supervision and inspections, and promote emergency drills for large-area power outages. We should refine and improve the electric power supply guarantee plan for major events and ensure the safety of electricity consumption at major events such as the 20th National Party Congress.

Accelerate the implementation of energy legislation and planning. We should promote the formulation of energy laws, advancing the formulation and revision of the electricity law, the renewable energy law, the coal law, and the regulations on petroleum reserves. We should do a good job in the implementation of the 14th Five-Year Plan Modern Energy Systems Plan and the plans for various sub-sectors and we should implement the tasks and measures specified in the Implementation Plan for Promoting Green and Low-carbon Energy Transformation and Doing a Good Job in Carbon Peaking and the Opinions on Improving Institutional Mechanisms and Policy Measures for Green and Low-Carbon Energy Transition. We should strengthen the linkage and coordination of planning policies, strengthen the supervision of the implementation of energy planning, policies, and major projects, promoting effective policy implementation. Taking into account the new situation and new requirements, we should strengthen policy reserve research on the implementation of the new strategy for energy security.

Deepen marketization reforms in key areas. We should promote the construction of a unified national electricity market system and do a good job in the construction of electricity markets in the South, Yangtze River Delta, Beijing-Tianjin-Hebei, and other regions. We should improve the market system in which medium and long-term transactions, spot transactions, and auxiliary service transactions are organically connected and promote the transition of qualified electricity spot pilots to long-term operation. We should actively promote distributed generation and direct transactions with nearby users. We should improve power dispatching and trading mechanisms and promote the fairness and openness of power grid and oil and gas pipeline network facilities. We should support and guide provincial pipeline networks to become integrated into the national pipeline network using marketized methods, actively promote the construction and interconnection of oil and gas trunk pipelines, promote the separation of transportation and sales by provincial pipe network operating enterprises, and encourage users to independently choose gas supply paths and gas supply entities.

VIII. Deepen the Promotion of International Cooperation in High-quality Energy

With high standards, sustainability, and the people’s wellbeing as our goals, we should consolidate the foundation of energy cooperation, expand the space for energy cooperation, reinforce the risk prevention and control network, and strive to achieve higher levels of cooperation, higher investment returns, higher supply quality, and higher development resilience.

Solidly promote pragmatic cooperation in energy. Provided that we can effectively prevent foreign investment risks, we should strengthen energy and resource cooperation with relevant countries. We should vigorously support green and low-carbon energy development in developing countries. We should consolidate and deepen cooperation and trade in the traditional energy field, pragmatically promote overseas cooperation in the nuclear power field, build and operate well overseas energy cooperation projects, and deepen electricity interconnection with surrounding areas. We should strengthen exchanges and cooperation with other countries on areas such as green energy and smart energy. We should build a number of green energy cooperation demonstration projects and see that green truly becomes the background color of the mutual construction of the “Belt and Road.”

Deepen international exchange and cooperation. We should adhere to the principles of joint consultation, joint contribution, and shared benefits, encourage the concepts of openness, greenness, and integrity, and build green and inclusive “Belt and Road” energy partnerships. We should strengthen exchanges and cooperation with international energy organizations. We should actively contribute to the formulation of international rules and standards and promote the establishment of a fair, reasonable, cooperative, and mutually beneficial global energy governance system.

Strengthen risk management and control for overseas projects. We should implement risk prevention and control systems, and consolidate and reinforce enterprise responsibilities and the management responsibilities of competent departments. We should coordinate the promotion of epidemic prevention and control and international energy cooperation and make all efforts to ensure the safety of relevant assets and personnel abroad. We should regulate the overseas business behavior of all types of enterprises, put an end to vicious competition, and safeguard the national interests and image.

The competent energy authorities of each province (autonomous region or [provincial-level] municipality), remote agencies of the National Energy Administration, and relevant energy enterprises should, based on the Guiding Opinions herein and taking into account the actual situations of their regions and enterprises, adopt strong and effective measures, make all efforts to control the implementation of various tasks, ensure the secure and stable supply of energy, and promote the low-carbon transformation and high-quality development of energy, providing stable and reliable energy guarantees for building China into a modernized socialist country in an all-round way.