Powering China's greener energy future

Once upon a time, coal was the defining feature of Inner Mongolia autonomous region's energy economy. Coal mining and coal-fired power underpinned regional growth, but such heavy dependence on carbon-intensive industries meant mounting ecological constraints and an economic structure that relied too heavily on a narrow range of resources. For years, coal power dominated the energy mix, renewable energy remained limited and industrial value chains were relatively short.

That picture is changing rapidly.

As China advances its carbon-peaking and carbon-neutrality goals and accelerates the development of new quality productive forces, Inner Mongolia is undergoing a profound transformation. Vast wind and solar bases are rising across deserts and barren land. Areas where mining once played a dominant role are being turned into photovoltaic fields. Traditional coal chemicals are moving toward greener, higher-value production, while renewable electricity generated in Inner Mongolia is being transmitted across the country.

From coal dominance to wind and solar leadership, from resource extraction to innovation-driven development, and from a major energy producer to an energy powerhouse, Inner Mongolia is reshaping its energy economy in a systematic way. In doing so, it is strengthening its role as a major national energy and strategic resources base, safeguarding national energy security, advancing the green transition and fostering new drivers of growth.

From cashmere, coal, rare earths and gas to wind, solar, hydrogen and storage

For decades, traditional energy resources such as coal, oil and natural gas played a central role in Inner Mongolia's development and in China's broader energy supply. During the country's rapid industrialization and urbanization, the region's abundant resources provided vital support for economic growth.

But as China set its carbon-peaking and carbon-neutrality goals and embraced green development, Inner Mongolia recognized that an energy model built primarily on traditional resources could not be sustained indefinitely. The region needed to turn toward greener energy and new sources of growth if it was to achieve both long-term industrial development and national strategic objectives.

That transition is now visible across Inner Mongolia's deserts, Gobi areas and other arid areas. Large-scale wind farms are rising, vast photovoltaic installations stretch across the horizon, and a new industrial ecosystem built around wind, solar, hydrogen, energy storage and new energy vehicles is taking shape.

Inner Mongolia has pursued this transition in a steady and pragmatic way, building new capacity before phasing out the old. Rather than treating energy transformation as an isolated issue, it has increasingly integrated energy development with ecological restoration and improvements in local livelihoods.

Major projects — such as the Ulaanqab wind power base, integrated solar and energy storage projects in the Kubuqi Desert, and large-scale renewable energy bases in the Tengger Desert — are turning deserts, Gobi areas and other barren lands into major sources of green energy. At the same time, approaches combining photovoltaic development with desert control and wind power with sand stabilization are helping restore fragile ecosystems while generating economic benefits.

In some projects, solar panels generate electricity above the ground while grass grows beneath them and livestock graze between the installations. The aim is to create both ecological and economic value from land once heavily affected by desertification.

In 2025, Inner Mongolia added 35 gigawatts of new energy generating capacity, bringing its total to more than 170 gigawatts. Wind power capacity alone surpassed 100 GW in Inner Mongolia, the first provincial-level region in China to reach that level. Renewable power generation reached 270 billion kilowatt-hours, while 90 billion kWh of green electricity was transmitted outside the region, an increase of more than 40 percent year-on-year.

Ultra-high-voltage transmission lines have become green arteries connecting northern China with other parts of the country, delivering cleaner electricity to North, Northeast and East China. This helps ease regional imbalances between energy supply and demand while supporting efforts by major electricity-consuming provinces and cities to reduce carbon intensity.

At the same time, Inner Mongolia is improving the efficient use of conventional energy. Energy-saving and carbon-reduction upgrades, together with flexibility retrofits at coal-fired power plants, are enabling coal power to provide essential system stability while accommodating the rapid expansion of renewables. The result is a more diversified and reliable energy system in which different energy sources complement one another.

Looking toward the 15th Five-Year Plan period (2026-30), Inner Mongolia aims to further capitalize on its wind and solar resources and accelerate the development of a new energy system centered increasingly on renewables while maintaining security and stability.

By the end of the period, renewable energy capacity is slated to reach 325 GW. Annual electricity transmitted outside the region is expected to exceed 400 billion kWh, of which more than 200 billion kWh would come from new-energy sources. A more integrated system combining power generation, grids, demand and storage — as well as wind, solar, thermal power, energy storage and hydrogen — is expected to take shape.

Inner Mongolia also plans to accelerate the development of the entire hydrogen value chain — covering production, storage, transportation and application — with the aim of building a major hydrogen industry hub in northern China. Expanded deployment of energy storage will further improve grid flexibility and the capacity to absorb renewable electricity.

Green energy is not only becoming a major contributor to China's carbon goals, but also one of the most visible symbols of Inner Mongolia's development, as it approaches the 80^thanniversary of its establishment as an autonomous region.

A stronger foundation for national energy security

Energy security is an essential part of national security. As a major national energy and strategic resources base, Inner Mongolia has long carried a responsibility to ensure stable energy supplies.

Over the past eight decades, its role has evolved with China's economy — from supplying energy under the planned economy to stabilizing supply and prices in a market economy, and, more recently, to responding to extreme weather and volatility in international energy markets. Throughout these changes, Inner Mongolia has continued to play an important part in ensuring that national energy demand is met.

Coal remains a crucial part of that responsibility.

Inner Mongolia has continued to release high-quality production capacity while seeking to stabilize capacity, improve the industry's structure and secure supplies. Faster approval of mining plans and the upgrading of mines through smart technologies are helping make coal production safer, more efficient and greener.

In 2025, raw coal output reached about 1.287 billion metric tons, providing reliable energy supplies to multiple provincial-level regions across China. Coal from Inner Mongolia continues to play a stabilizing role in winter heating, power generation and industrial production.

To respond to extreme cold spells and market fluctuations, the region has also strengthened coal reserves, dynamic monitoring and early-warning mechanisms, while tightening oversight of medium- and long-term supply contracts. These measures are intended to prevent supply disruptions and excessive price volatility.

During the 15th Five-Year Plan period, Inner Mongolia plans to further improve a three-part supply security system covering production capacity reserves, emergency reserves and medium- and long-term contracts. Coal production capacity is expected to remain at around 1.3 billion metric tons, while reserve production capacity is planned to reach 23.6 million tons a year by 2030. The goal is to maintain a reliable energy security buffer regardless of changes in international energy markets.

Electricity infrastructure is also being strengthened. The 500-kilovolt backbone grids in eastern and western Inner Mongolia continue to expand, ultra-high-voltage transmission capacity is increasing, and new energy storage is growing rapidly. Together, these developments are improving both grid regulation and the ability to integrate renewable power.

Inner Mongolia has already built several cross-regional ultra-high-voltage transmission corridors and is developing a power system in which grids, generation, demand and storage operate more closely together. This supports local economic development and household energy needs while also strengthening the region's role in China's nationwide electricity allocation system.

During the 15th Five-Year Plan period, Inner Mongolia will accelerate construction of large-capacity, high-efficiency cross-regional transmission networks for green electricity and advance the integration of power sources, grids, loads and storage facilities. It will also improve grid dispatching to strengthen power supply under extreme conditions.

At the same time, the region continues to reinforce energy safety. Stronger supervision of coal mines, electricity generation, oil and gas operations, better emergency planning and greater supply-chain resilience are intended to ensure security throughout energy production, transportation and supply. The objective is clear: greater stability in Inner Mongolia should contribute to greater resilience in China as a whole.

Renewing traditional industries and building new ones

Innovation has become central to Inner Mongolia's energy transformation.

Over the past decades, the region has gradually moved from extensive resource extraction and primary processing toward technological upgrading and longer, higher-value industrial chains. New quality productive forces are increasingly becoming a key driver of this transition.

Traditional coal chemicals are one example. The industry is moving away from an extensive, high-emissions development model toward higher-end, smarter and greener production.

As one of China's major demonstration areas for modern coal chemicals, Inner Mongolia is seeking to move beyond using coal primarily as a fuel and increasingly develop it as an industrial feedstock and source of advanced materials. A number of major projects have been launched to extend and strengthen industrial chains and move production toward more sophisticated and higher-value products.

With the wider application of advanced technologies, companies have steadily reduced their energy consumption, while their product mix has expanded from traditional fertilizers and methanol to high-end polyolefins, biodegradable materials and fine chemicals, significantly increasing added value.

During the 15th Five-Year Plan period, modern coal chemicals are expected to hasten low-carbon development across the entire industrial chain. The development of green and low-carbon industrial parks is intended to provide a model for the transformation of other resource-dependent regions.

At the same time, Inner Mongolia's renewable energy value chain has expanded rapidly from a limited starting point. The region has sought to build industrial chains in parallel around wind, solar, hydrogen, storage and new energy vehicles. As wind and solar projects have expanded, manufacturers of wind turbines, photovoltaic components and energy storage batteries have also been introduced.

Major companies, including the State Power Investment Corporation, Longi Green Energy Technology Co Ltd and CATL, have established operations in the region, helping increase the local production of key components and strengthening industrial supply chains.

As a result, the new energy sector is expanding beyond electricity generation into a full chain encompassing research and development, manufacturing, applications and services.

Looking ahead, Inner Mongolia aims to build a nationally competitive renewable energy equipment manufacturing base, a hydrogen demonstration and application base, and an energy storage innovation hub. The goal is to create a more complete industrial ecosystem and turn new energy into a new pillar of regional growth.

Scientific and technological innovation will provide essential support. Inner Mongolia continues to update its innovation policies and establish national- and regional-level platforms in energy, chemicals and new materials. The number of high-tech companies and technology-oriented small and medium-sized enterprises has risen, while research and development investment continues to increase.

The region is focusing technological efforts on cleaner coal utilization, renewable electricity generation, energy storage and hydrogen, while promoting the local commercialization of research results.

Closer cooperation among universities, research institutes and businesses is also helping connect scientific research with industrial application. During the 15th Five-Year Plan period, Inner Mongolia plans to further increase its research and development investment, expand the number of high-tech companies and strengthen its position in energy-related technological innovation.

Making energy development greener and more effective

Building a major national energy and strategic resources base requires more than industrial capacity. It also depends on effective governance.

Over the past decades, Inner Mongolia has continued to reform its energy administration, remove institutional obstacles, improve policies and strengthen coordination. Increasingly, the emphasis has been on balancing development with security and resource development with environmental protection.

The region is improving its energy governance system by combining the role of an effective market with that of a proactive government. It is strengthening its energy-related laws and policies and promoting more standardized, rules-based governance.

Market mechanisms supporting the energy transition are also being improved. Inner Mongolia is working to better connect markets for green electricity, carbon emissions and energy-use rights, improve the integration of green power data and strengthen recognition of green electricity certification. It is also seeking closer alignment with international rules and preparing for challenges arising from measures such as carbon border tariffs.

Greater coordination between eastern and western Inner Mongolia is intended to reduce regional and industrial barriers, improve market integration and enable more efficient allocation of energy resources.

A better business environment is another priority. Inner Mongolia has sought to simplify the procedure of approvals for energy projects, shorten processing times and improve administrative services through one-stop services and parallel approval procedures.

It is also encouraging State-owned, private and foreign-invested enterprises to participate in the development of the energy base. Regular communication between government and businesses is intended to help resolve practical difficulties and create a more stable, fair, transparent and predictable environment for investment.

Energy development is also being more closely integrated with ecological protection.

Inner Mongolia has long carried the responsibility of helping build an important ecological security barrier in northern China. Renewable energy projects are increasingly being combined with desertification control, sand stabilization and ecological restoration.

In areas such as the Ulan Buh and Kubuqi deserts, photovoltaic projects are helping slow the movement of sand dunes while encouraging the gradual recovery of desert vegetation. Renewable power development and desert control can therefore reinforce each other.

In coal-mining areas, green mine construction is being expanded alongside land reclamation, vegetation restoration and water conservation. The objective is to repair ecosystems even as energy resources continue to be developed.

During the 15th Five-Year Plan period, Inner Mongolia will continue to control energy and carbon intensity and promote low-carbon transformation throughout the energy value chain. Economic growth, energy security, ecological protection and improvements in people's livelihoods must advance together.

Eight decades of transformation, and a new journey ahead

Over the past decades, Inner Mongolia has grown from a border region with a relatively weak energy foundation into one of China's most important energy and strategic resource bases.

Its development model has also changed — from extensive exploitation of conventional resources to green energy development, and from expansion driven primarily by resource endowments to growth increasingly powered by innovation. Green development and innovation are becoming defining features of the region's energy economy.

Throughout this period, Inner Mongolia has sought to fulfill its national responsibilities while building on its own resource advantages. It has helped secure energy supplies while pursuing industrial transformation, providing not only a foundation for national economic development but also an example of how a resource-dependent region can pursue greener and higher-quality growth.

As Inner Mongolia approaches the 80th anniversary of the establishment of the autonomous region in 2027 and looks toward the 15th Five-Year Plan period, its energy transformation is entering a new stage.

The task ahead is to further develop a new energy system, strengthen energy security, foster new quality productive forces, deepen reform and better integrate energy development with ecological protection.

From coal dominance to wind and solar leadership, Inner Mongolia is driving a transformation that is ultimately about more than changing the sources of energy it produces. It is about building a national energy and strategic resources base that is more stable, more secure, greener and more innovative — and using that transformation to support China's broader pursuit of high-quality development.

The author is a researcher at the Institute of Economics, Inner Mongolia Academy of Social Sciences.

The views don't necessarily represent those of China Daily.

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