Energy Transition Under Chinese Path to Modernization: Risk Identification and Responses

Abstract

Energy transition is crucial for realizing sustainable development and environmental friendliness; it is also vital for maintaining national energy security and promoting social equity of China. Therefore, studying the potential risks and their coping strategies regarding energy transition has practical and strategic significance. This study analyzes the essential requirements of China’s modernization for energy transition, identifies the risks during energy transiton based on the essential requirements, and proposes the coping strategies and safeguard mechanisms. The results of the study reveal that China’s modernization puts forward three essential requirements for energy transition, namely energy security, environmental friendliness, and social equity. In terms of energy security, China’s energy transition faces security risks regarding the coal industry, oil and gas supply, and new power system operation; in terms of environmental friendliness, it faces constraints from low-carbon technologies and the supply risk of key metals and minerals for new energy; it also faces the risk of social inequity and certain financial risks. Furthermore, strategies are proposed to coping with the risks regarding energy security, environmental friendliness, social equity, and finance; safeguard mechanisms for each type of coping strategies are established from two perspectives: short-term prioritized implementation and long-term sustainable enforcement.

Keywords

• energy transition
• Chinese path to modernization
• oil and gas imports
• power system
• low-carbon technology
• metallic mineral