New Five-Year Plans Promote Energy Industry Reform

Facing ongoing pollution challenges and a push to diversify energy sources, China’s energy planners kicked off 2017 by announcing an array of 13th Five-Year Plans (13FYPs). Offering quantifiable short-term goals for limiting reliance on coal in favor of oil and gas, these plans collectively focus on emissions cuts, renewable energy development, and improved energy industry efficiency, while encouraging technology solutions such as data centers.

Chinese Energy Transition Increases Need for US Technology

China’s energy planners seek to increase production, distribution, and consumption of renewable energy as a means to diversify energy supply. However, as China attempts to transition from coal to other energy sources, it struggles to utilize existing renewable capacity. This inefficiency, caused by overcapacity and grid limitations, has hindered the country’s ability to achieve renewable sector development goals.