Establish a series of common and fundamental legal systems in the energy sector.

China's first energy law is here

On [date], the "Energy Law of the People's Republic of China" was adopted by the 12th meeting of the Standing Committee of the 14th National People's Congress and will come into effect on [date]. Industry insiders believe that the enactment of the Energy Law provides a solid foundation for the long-term development of China's energy sector, effectively promoting the growth of new energy, supporting advancements in energy technology, and driving the construction of a high-standard new energy system, thereby ensuring high-quality development of China's energy industry.

Filling legislative gaps in the energy sector

Before the introduction of the Energy Law, China had already enacted specific laws in the energy sector, such as the Electricity Law, the Energy Conservation Law, and the Renewable Energy Law. However, these laws were promulgated relatively early and, in light of the demands of energy development in the new era, there was a need for a foundational law to guide the development of China's energy sector. The introduction of the Energy Law effectively fills the legislative gap in the energy field. "For the first time in the history of China's energy development, the national energy strategy is explicitly stipulated in the law, serving as a fundamental principle that should be adhered to in energy work for the long term. This provides a roadmap for high-quality energy development in the new era, ensuring that the energy industry progresses steadily on the track of the rule of law," said Ma Zhengping, Deputy Director of the Civil Law Office of the Legislative Affairs Commission of the National People's Congress.

The energy law consists of nine chapters and eighty articles, including the general provisions, energy planning, energy development and utilization, energy market system, energy reserves and emergency response, energy technology innovation, supervision and management, legal responsibilities, and supplementary provisions. The law stipulates the requirements for energy planning, clarifying the requirements for national, sector-specific, inter-regional, and provincial (autonomous regions and municipalities) energy planning. This provides corresponding institutional support for the diverse and multi-level needs of the state and local governments, industries, and enterprises.

A senior official from the Department of Legal and Institutional Reforms under the National Energy Administration stated that the Energy Law is a foundational and guiding legislation, establishing a series of common and fundamental legal systems in the energy sector, which provides essential legal support for China's energy development. This marks a significant milestone in the construction of the energy legal system, offering crucial legal safeguards for accelerating the planning and construction of a new energy system.

In recent years, Tongren City, Guizhou Province, has actively practiced the concept of green development, promoted the construction of distributed rooftop photovoltaic projects, and facilitated the development and utilization of renewable energy. The Southern Power Grid Guizhou Tongren Power Supply Bureau has provided services for the integration of new energy, absorbed green energy, optimized the structure of power supply and demand, and supported the construction of a new energy system.

Strengthen the priority of renewable energy

How is energy developed and utilized? The Energy Law clearly states that the state supports the priority development and utilization of renewable energy, the rational development and clean and efficient utilization of fossil energy, the promotion of the safe, reliable, and orderly substitution of fossil energy by non-fossil energy, and the increase in the proportion of non-fossil energy consumption. According to the Energy Law, the energy authorities of the State Council, in collaboration with other relevant departments of the State Council, formulate and implement the minimum proportion targets for the consumption of renewable energy in the energy mix. The state also improves the mechanism for ensuring the consumption of renewable energy power. Meanwhile, relevant departments monitor and assess the implementation of the minimum proportion targets for renewable energy consumption and the fulfillment of renewable energy power consumption responsibilities.

From the perspective of renewable energy categories, the Energy Law proposes that the state will coordinate the development of hydropower with ecological protection, strictly controlling the construction of small hydropower stations. Efforts will be made to promote the development and utilization of wind and solar energy, adhering to both centralized and distributed approaches, accelerating the construction of wind and photovoltaic power bases, supporting the local development and utilization of distributed wind and solar power, and reasonably and orderly developing offshore wind power. The development of solar thermal power will be actively pursued. The law encourages the rational development and utilization of biomass energy, promoting the development of biomass power generation, biomass clean heating, and biofuels and biomethane based on local conditions. Nuclear power will be developed actively, safely, and orderly.

"For the sequencing of energy development, the Energy Law clearly stipulates that renewable energy takes precedence over traditional fossil fuels, proposing to 'prioritize the development and utilization of renewable energy, and promote the safe, reliable, and orderly substitution of non-fossil energy for fossil fuels,' which indicates that the status of new energy has been greatly elevated in the Energy Law, effectively promoting the development of new energy," said Guo Haitao, Director of the Institute of Energy Economics and Finance at China University of Petroleum (Beijing).

Encourage energy technology innovation

The recently released White Paper on China's Energy Transition points out that with the rapid advancement of the global energy transition towards green and low-carbon development, the trend of "technology as a resource" is becoming increasingly evident. Technological innovation is the core element to accelerate the energy transition and develop new forms of energy production. China is deeply implementing an innovation-driven development strategy, promoting the coordinated development of energy industry chains and innovation chains, and continuously enhancing the "new" content in energy, with a focus on consolidating and extending advantageous industries, transforming and upgrading traditional industries, and accelerating the cultivation of future industries.

Focusing on technological innovation in the energy sector, the Energy Law establishes a special chapter titled "Energy Technological Innovation," which explicitly states that the state formulates policies and measures to encourage and support energy technological innovation, promoting the establishment of an energy technological innovation system led by national strategic scientific and technological forces, with enterprises as the main body, the market as the guide, and deep integration of industry, academia, and research. It encourages and supports fundamental, key, and cutting-edge research, development, demonstration, promotion, and industrialization of major technologies, equipment, and related new materials in areas such as energy resource exploration and development, clean and efficient utilization of fossil fuels, development and utilization of renewable energy, safe utilization of nuclear energy, development and utilization of hydrogen energy, energy storage, energy conservation, and more.

"Technological innovation is the key to enhancing energy supply capacity, improving the level of green energy consumption, and building a strong energy nation." Gao Hu, a researcher at the China Macroeconomic Research Institute, believes that the energy law stipulates the management systems for the energy technological innovation system, innovation-driven mechanisms, key support technology directions, major engineering demonstrations, and the cultivation of specialized scientific and technological talents. It establishes the key support directions for energy development and utilization, as well as the development model integrating with digital technology, and explicitly supports the application of advanced information technology in the energy sector. These measures will effectively promote energy technological innovation, thereby providing strong support for the high-quality development of China's energy sector.