New Energy Weekly Report

National Development and Reform Commission: Containing the Disorderly Expansion of Outdated Production Capacity; April Sees Accelerated Growth in Wind and Solar Energy Production; Fuel Prices Decline

From May 19 to May 23, the National Development and Reform Commission (NDRC) held a press conference for May. Li Chao, Deputy Director of the Policy Research Office and spokesperson for the NDRC, stated that addressing “involutionary” competition has garnered significant attention. The central government has made clear directives on this issue, including optimizing industrial layout and curbing the disorderly expansion of outdated production capacity.

According to the National Bureau of Statistics, energy production in April showed an accelerated growth in wind and solar energy within the industrial sector. The NDRC has also lowered domestic refined oil prices, reducing gasoline and diesel prices (standard quality) by 230 yuan and 220 yuan per ton, respectively.

Latest Developments

May 20: NDRC Press Conference Highlights

During the press conference on May 20, Li Chao emphasized the importance of addressing “involutionary” competition. The central government has made explicit plans to optimize industrial layouts and curb the disorderly expansion of outdated capacity. It aims to enhance quality and standards, promote mergers and reorganizations through market-oriented methods, and accelerate the elimination of inefficient production capacities in sectors like refining and steel. Careful assessments will also guide new capacity projects in industries such as coal chemistry and alumina to prevent blind expansions. Furthermore, the initiative encourages self-regulation in industries such as new energy vehicles and photovoltaics, focusing on technological research and development.

May 20: Transportation Department’s Efforts

The Ministry of Transport held a press conference on May 20, where spokesperson Li Ying discussed the integration of transportation and energy. The ministry will focus on enhancing planning and policy coordination, expanding application scenarios, promoting the use of new energy equipment, and increasing technological research and development to achieve effective integration.

According to data from the Ministry of Transport, the installed capacity for clean energy, including wind and solar, in national transportation infrastructure has surpassed 890,000 kilowatts. Additionally, there are about 35,000 charging piles and 51,000 charging parking spaces, with new energy city buses making up 77.6% of the total fleet. Over 430 clean energy vessels are either completed or under construction, and the electrification rate of the national railway stands at 75.3%.

May 20: National Energy Administration’s Guidelines

The National Energy Administration released guidelines to strengthen the power emergency response system and capabilities. The document outlines 25 specific measures across eight dimensions, including improving the organizational command system for power emergencies, enhancing monitoring, and risk management capabilities, as well as boosting technological innovation in emergency response.

April Energy Production Data

On May 19, the National Bureau of Statistics released April’s energy production data. The figures indicated a decline in the growth rate of coal, crude oil, and electricity production in the industrial sector, while natural gas production saw an increase. In April, the output of raw coal reached 390 million tons, marking a year-on-year growth of 3.8%. The production of crude oil was 17.72 million tons, with a year-on-year increase of 1.5%, though this was a slowdown from previous months. The processing of crude oil decreased by 1.4% compared to last year.

Conversely, natural gas production increased by 8.1% year-on-year, totaling 21.5 billion cubic meters. Electricity generation from the industrial sector reached 711.1 billion kilowatt-hours, a 0.9% increase from the previous year.

Fuel Price Reductions

According to the NDRC’s announcement on May 19, domestic prices for gasoline and diesel have been reduced by 230 yuan and 220 yuan per ton, respectively, effective from May 19, 2025, at midnight.

Electricity Consumption and Infrastructure Investments

On May 20, the National Energy Administration reported that total electricity consumption in April reached 772.1 billion kilowatt-hours, reflecting a year-on-year growth of 4.7%. Breakdown by sector shows:

• Primary industry: 11 billion kilowatt-hours (up 13.8%)
• Secondary industry: 5,285 billion kilowatt-hours (up 3.0%)
• Tertiary industry: 1,390 billion kilowatt-hours (up 9.0%)
• Residential electricity consumption: 936 billion kilowatt-hours (up 7.0%)

As of the end of April, the total installed capacity for electricity generation in the country reached 3.49 billion kilowatts, marking a 15.9% increase year-on-year. Solar power capacity reached 990 million kilowatts (up 47.7%), while wind power capacity increased to 540 million kilowatts (up 18.2%).

Recent Projects and Developments

May 19: 330 kV Yushu Second Circuit Project Progress

As of May 19, the 330 kV Yushu Second Circuit project was over 50% complete, with 57% of construction and 62.5% of equipment maintenance finished, ahead of schedule.

May 20: CATL’s Hong Kong Listing

CATL was listed on the Hong Kong Stock Exchange on May 20, opening at 296 Hong Kong dollars, a 12.55% increase from its offering price of 263 Hong Kong dollars, making it the largest IPO in Hong Kong in recent years.

May 20: Sinopec and CATL Partnership

Sinopec has taken a leading role in investing in CATL to promote the development of new energy charging stations, providing efficient energy services to electric vehicle owners.

May 22: China’s First Offshore CCUS Project

China’s first offshore Carbon Capture, Utilization, and Storage (CCUS) project was launched in the Pearl River Estuary, where CO2 generated during oil extraction is captured and injected underground.

May 23: Natural Gas Transmission Milestone

The National Pipeline Network Group reported that since the integration of major oil and gas pipelines began on October 1, 2020, the cumulative natural gas transmission has surpassed 1 trillion cubic meters.

Looking Ahead

The ongoing efforts in the energy sector highlight a commitment to sustainable development, technological innovation, and the optimization of energy resources in China. The focus on integrating new energy sources with existing infrastructure is crucial for future growth and stability in the energy landscape.