Nation's energy mix gains edge amid global woes

China's systematic approach to energy development and massive infrastructure investment has provided a compelling example of strategic foresight for the international community amid growing global uncertainties, a senior Russian executive said.

Over the past few decades, the world primarily viewed energy as a matter of resources, technology and markets. However, recent events have demonstrated that geopolitical conflicts, disrupted trade routes, surging power demand, and accelerating technological competition have made energy security a critical pillar of national resilience, said Igor Sechin, CEO of Rosneft.

The vulnerability of global energy markets has been starkly exposed by recent tensions in the Strait of Hormuz. Serving as a veritable "artery" in the global shipping system, the strait plays a crucial role in global oil and liquefied natural gas supplies.

According to the US Energy Information Administration, the daily transport volume of crude oil and petroleum products through the strait is estimated to have been around 20 million barrels in 2025, with an annual energy trade value approaching $600 billion.

However, following recent military strikes by the United States and Israel on Iran, the security of this strategic chokepoint has dropped to freezing point. Surging fuel prices have directly driven up operating costs worldwide. Vincent Clerc, CEO of Danish shipping giant Maersk, warned that these price hikes "will be passed on to our customers and to consumers".

Against this turbulent backdrop, China's experience has become highly relevant. "In recent decades, China has demonstrated not only economic success but also remarkable science and technology advances, enabling it to become a global energy power," Sechin noted.

He emphasized that thanks to its balanced approach to ensuring energy security, China turned out to be the most prepared for the Hormuz crisis and the rise in fuel prices.

Sechin pointed out that China has created cheap urban and intercity transport infrastructure for domestic consumers. After the blockade of the Strait of Hormuz, this foresight allowed motor fuel consumers to painlessly use available alternatives, such as electric cars, electric buses, gas trucks, the subway, electric trains and electric taxis.

According to a report by Sechin, this resilience stems from China's view of energy development as a unified, long-term task inherently linked to economic security. Over a 10-year period, solar and wind energy generation in China has grown tenfold to 2,300 terawatt-hours, accounting for 22 percent of the country's energy balance.

At the same time, the country continues to construct thermal power plants to ensure supply stability, the report noted. Last year alone, 78 gigawatts of coal generation were put into operation. China is also implementing the largest program for the development of nuclear generation, with 39 reactors currently being built, representing more than half of all nuclear power plants under construction in the world.

To ensure the flexibility of this massive energy system, energy storage plays an important role, a sector where China also leads globally, Sechin highlighted. In parallel, China leads in investments in power grids, investing about $100 billion in this sector.

This diversified and systemic layout has yielded tangible competitive advantages, particularly in electricity prices, he observed. Power costs in China stand at about 9 cents per kilowatt-hour for industry — 72 percent lower than in Germany and 59 percent lower than in France — and about 7 cents per kilowatt-hour for the population, which is 58 percent lower than in the US.

"Only Russia stands at a similar level," Sechin added.

Ultimately, strengthening energy security is part of China's broader strategy of internal resource mobilization, Sechin concluded. By translating strategic vision into real economic advantages through massive energy investments and systemic infrastructure development, China's model is increasingly capturing the attention and study of the international community.

renqi@chinadaily.com.cn