China’s secure energy transition

Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports

China’s draft five-year plan, released in March, balances advancing its energy transition with ensuring energy security and prioritising the buildout of domestic supply of both renewables and fossil fuels. It also calls for increased Russian gas pipeline imports to help shield China from LNG market volatility, adding momentum to Moscow’s long-delayed Power of Siberia 2 project. While the plan places heavy emphasis on renewables, it stops short of signalling any near-term retreat from hydrocarbons, with domestically produced coal, oil and gas remaining key to providing stable and secure energy. “Renewables will keep expanding, but not at the expense of fossil fuel stability. Geopolitical inst