Zhou Xiaozhun: The transition to renewable energy requires a pricing mechanism that is sustainable, and it cannot rely on subsidies to facilitate the energy transition.
Zhou Xiaozhun: The transition to renewable energy necessitates a sustainable pricing mechanism and cannot depend on subsidies to drive the energy transition. On June 1, 2025, at 20:35, Finance reported that during the period from March 25 to 28, a conference was held to discuss the upcoming 2025 annual meeting of the Five Energy Conference. This conference included representatives from various energy organizations, including the China National Energy Administration and the National Energy Administration of China. The discussions centered around policies and measures to accelerate the energy transition.
During the conference, Zhou Xiaozhun expressed concerns over how to enhance the energy transition and provided a key suggestion: the need for a sustainable pricing mechanism. He stated, “This involves both pricing and incentive mechanisms, and simultaneously addresses significant issues related to resource allocation.” He emphasized that a central issue in the energy transition is how to promote the increased use of renewable energy sources.
Zhou pointed out that the current pricing mechanisms for renewable energy are not yet optimal, primarily due to the costs associated with carbon emissions and their impact on energy prices. He recommended that discussions on improving pricing mechanisms should focus on how to enhance the integration of renewable energy into the existing energy system.
Moreover, Zhou highlighted that the transition to renewable energy would require a more robust grid capacity to accommodate the increasing share of green electricity. He suggested that it is essential to ensure the reliability and flexibility of the power system to adapt to variable renewable energy generation.
In terms of strategies for the energy transition, Zhou proposed a focus on enhancing renewable energy generation while also considering the reduction of carbon emissions through policy adjustments. He stressed the importance of collaboration between different sectors to achieve a more effective energy transition.
Looking ahead, the pricing mechanisms for renewable energy will likely need to be further refined. The primary challenge remains addressing the financial implications of carbon emissions and ensuring that energy prices reflect the true costs of generation.
In conclusion, Zhou Xiaozhun’s insights during the conference underscored the need for a comprehensive approach that aligns pricing mechanisms with the goals of sustainability and energy transition. His recommendations are aimed at guiding future policies and initiatives to promote the integration of renewable energy in a manner that is both economically viable and environmentally responsible.
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