Key Takeaways:
- China’s electricity output and clean energy technology exports reached record highs in 2025
- The country’s imports of liquefied natural gas (LNG) and coal contracted in 2025, while crude oil imports rose
- China’s clean electricity generation continued to grow, with a 15.4% jump in 2025
- The country’s exports of clean energy technologies, including electric vehicles and solar panels, surged by over 20% in 2025
- China is expected to maintain its strong export pace of clean energy technologies in 2026 and beyond
Introduction to China’s Energy Market
China’s energy market has undergone significant changes in 2025, with the country’s electricity output and clean energy technology exports reaching record highs. The country’s power system is becoming cleaner and less reliant on fossil fuels, with a significant reduction in imports of liquefied natural gas (LNG) and coal. In contrast, crude oil imports rose in 2025, following a rare year-over-year drop in 2024. This article will provide an overview of China’s key domestic and international energy market impacts as 2026 gets underway.
Power Shifts in China’s Energy Sector
China’s imports of LNG fell by 15% in 2025 to the lowest since 2022, with total imports of 66.6 million metric tons. This decline was driven by reduced industrial activity amid an enduring manufacturing soft patch. However, China’s power generators boosted gas-fired electricity production by 5% in 2025 to a record, which helped underscore total demand for natural gas even as LNG imports sagged. The share of natural gas within China’s electricity network dropped to a multi-year low of 2.8%, highlighting that gas retains only a minor role in the electricity sector.
Cleaning Up China’s Energy Sector
While China’s appetite for coal and gas contracted last year, domestic generation of clean electricity continued to march higher. Clean electricity supplies were 4,326 terawatt hours (TWh) in 2025, according to think tank Ember, a 15.4% jump from the year before. A 43% surge in solar generation alongside a 14% expansion in wind output were the main drivers of the clean power climb. With the country’s mammoth manufacturing sector still operating below capacity due to tepid local and international consumer demand, power firms were able to cut back on coal-fired generation and still lift overall electricity supplies in 2025.
Crude Growth in China’s Energy Sector
Following a rare year-over-year drop in crude oil imports in 2024, China’s crude purchases rose in 2025, denting expectations that its oil imports had entered perpetual decline. Total crude oil imports were 3.75 billion barrels, according to Kpler, which was a 43 million barrel, or 1.1%, gain from the previous year. With demand for refined products holding largely flat last year, much of the imported crude was used to replenish stockpiles, which Beijing views as an essential buffer against rising global geopolitical risk. More stockbuilding is expected through 2026, which alongside any recovery in overall industrial activity could help sustain China’s oil import orders going forward.
Exported Surplus of Clean Energy Technologies
China can also be expected to maintain its strong export pace of electric vehicles, battery storage systems, and solar panel components in 2026 and beyond. The world’s leading manufacturer of clean energy technologies produces far more of each category than can be consumed at home. As a result, China’s total clean tech exports have blasted to record highs in recent years, surging by more than 20% in 2025 alone to around $222 billion. Batteries were by far the most lucrative earner, generating $82 billion in export receipts, while EV exports were valued at $69 billion. Both were an annual record.
Conclusion and Future Outlook
In conclusion, China’s energy market has undergone significant changes in 2025, with a shift towards cleaner energy sources and a reduction in imports of fossil fuels. The country’s clean energy technology exports have also surged, with a strong export pace expected to continue in 2026 and beyond. As the world’s largest power producer and energy consumer, China’s energy market will continue to have a significant impact on the global energy system. With the country’s commitment to reducing its reliance on fossil fuels and increasing its use of clean energy sources, China is expected to play a major role in shaping the future of the global energy market.