China’s July Electricity Consumption Surpasses 1 Trillion kWh, Matching Japan’s Annual Demand

On August 26, the State Council Information Office convened a press conference on “High-Quality Fulfillment of the 14th Five-Year Plan.” Wang Hongzhi, member of the Party Leadership Group of the National Development and Reform Commission and Director of the National Energy Administration, detailed the achievements in energy development during this period and addressed questions from the media.

Wang highlighted that China’s electricity consumption in July exceeded 1 trillion kilowatt-hours for the first time—a figure equivalent to Japan’s total annual power usage. He attributed this milestone to a combination of widespread heatwaves, floods and typhoons experienced during the “July 7th to August 8th” period, alongside robust economic recovery that elevated demand for secure energy supply.

Despite facing extreme weather and heightened demand, China’s power system navigated the summer peak smoothly, with no large-scale outages reported. This performance underscores the nation’s strengthened energy security and operational resilience.

Over the past five years, the National Energy Administration has deepened the rural grid reinforcement initiative, allocating RMB 25 billion in central budget investment and catalyzing over RMB 800 billion in rural network upgrades. Distributed renewable energy deployment has also accelerated: by mid-2025, residential photovoltaic installations reached 180 million kilowatts, generating approximately RMB 14 billion in incremental annual income for farmers. Efforts to extend main grid access to remote regions and deploy off-grid solutions on islands have further enhanced energy access for all communities.

Key targets from the 14th Five-Year Plan—such as total energy production capacity and the non-fossil energy share—are on track for timely completion. During this period, China established the world’s largest electric-vehicle charging network, with two chargers for every five vehicles, and built the fastest-growing renewable energy system globally, raising renewables’ share of installed capacity from 40 percent to around 60 percent.

Innovation has driven remarkable progress: Chinese entities now hold over 40 percent of the world’s new-energy patents, and breakthroughs in photovoltaic efficiency and offshore wind turbine capacity have set new global benchmarks. In just a few years, China’s new-energy storage capacity has become the largest worldwide. Emerging business models—such as smart microgrids, virtual power plants and vehicle-to-grid pilots—are advancing rapidly, while the integration of energy with industrial and transportation sectors is spawning new industries and fueling modern productivity.

Market vitality has surged: power-market registrants have reached 970,000 entities, five times the number in 2020. The government has introduced ten measures to foster private-sector participation, and today the majority of photovoltaic equipment and over 60 percent of wind-turbine manufacturing firms are privately owned. In several nuclear projects, private investors hold up to 20 percent equity.

China now operates a comprehensive energy production, supply, storage and distribution system, supported by mechanisms that secure supply and stabilize prices. National oil and gas network integration is accelerating, large-scale grid projects enable interprovincial power sharing, and strategic reserve enhancements have fortified resilience. Even amid global volatility and geopolitical tensions, the nation’s energy supply has remained orderly and reliable.

Since the 14th Five-Year Plan began, annual energy-industry investment has averaged growth of over 16 percent, with yearly totals surpassing RMB 4 trillion, RMB 5 trillion and RMB 6 trillion in succession. As energy investment now accounts for nearly 10 percent of fixed-asset investment, especially in power and heat production—where growth exceeds 20 percent—this sector has become a powerful engine for economic stability.

Renewable energy has emerged as the dominant driver of power investment, accounting for more than 80 percent of new capacity spending in 2024. Moreover, investment in new energy storage, charging infrastructure, hydrogen and integrated energy systems totaled nearly RMB 200 billion last year, establishing fresh growth avenues.

By mid-2025, China’s new-energy storage capacity reached 95 million kilowatts—nearly 30 times its size five years ago—equipping the power system with a “giant battery.” Hydrogen production and consumption exceeded 36 million tons in 2024, the highest globally, with renewable hydrogen capacity constituting over half of the world total. Artificial intelligence is likewise transforming energy operations, enhancing applications in renewable generation, grid inspection and oil-and-gas resource exploration, and continuously revitalizing the sector.

In the first half of 2025, ten private companies acquired stakes exceeding 10 percent in five nuclear-power projects, with the largest equity share at 20 percent. The National Energy Administration has persistently lowered investment barriers and improved services to empower private-sector growth, resulting in double-digit annual investment increases in key projects. Private enterprises now perform over 85 percent of power-facility construction and constitute more than 80 percent of large charging-service providers. Deep engagement by private investors is reshaping the energy landscape.

To accommodate the surge in electric-vehicle charging demand, China’s charging network expanded tenfold to 16.696 million units by the end of July, leading the world in scale. The administration is promoting “green vehicles” and “green power” through green certificates and electricity trading, and has launched vehicle-to-grid pilots in several provinces to optimize load management.

When asked whether soaring electricity demand from electric vehicles and artificial intelligence would affect energy-structure adjustments and the green transition, Du Zhongming, Director of the Electricity Department, explained that advanced manufacturing represented by EVs and digital industries driven by AI and big data have powered rapid increases in electricity use. In 2024, power consumption by new-energy vehicle manufacturing rose 34.3 percent, internet and related services grew 20.5 percent, and from January to July 2025 EV charging services climbed over 40 percent. These trends illustrate how emerging industries are reshaping energy consumption toward clean electricity and accelerating the green transformation of both energy supply and demand.

In the first half of 2025, the growth in wind and solar generation outpaced the overall increase in national electricity consumption. Since the 14th Five-Year Plan began, the non-fossil share of power generation has risen by more than five percentage points, with wind and solar at the forefront of this transition.

Li Chuangjun, Director of the New Energy and Renewable Energy Department, noted that market-based electricity transactions more than doubled from 10.7 trillion kilowatt-hours during the 13th Five-Year Plan to 23.8 trillion kilowatt-hours, and have remained above 60 percent of total electricity consumption for four consecutive years. This means roughly two out of every three kilowatt-hours of power are now traded through market mechanisms. Participation has broadened significantly: coal, gas, nuclear, hydro and renewable generators are active in the market, all commercial and industrial users participate directly, and independent storage and other new entities are flourishing, forming a diverse and orderly market structure.