In the first three quarters of this year, China added 310 gigawatts of renewable energy capacity, up 47.7 per cent year on year and accounting for 84.4 per cent of all new power installations in the country, according to the National Energy Administration. This progress is more than climate leadership or capacity building; it involves a holistic reconstruction of the energy system.

China is replacing the 20th-century fossil fuel order with a 21st-century “electro-industrial order” where power lies not in the control of oil and gas, but with those managing power grids, batteries and minerals. This shift partly arises from China’s energy vulnerabilities.

Despite its significant domestic energy production, China’s rapid industrialisation was driven by imported oil and gas. As demand consistently exceeded domestic supply, China became a net oil importer in 1993. This reliance on imported oil and gas – primarily through the Malacca Strait, which handles about 80 per cent of its oil imports – combined with US naval control over key maritime routes in the South China Sea and Indian Ocean, increases China’s risks.

Maritime insecurity has further underscored the dangers of relying on sea-shipped fossil fuels. Consequently, China has turned to renewable energy to reduce its vulnerabilities and enhance its long-term energy security.

China’s drive towards renewable energy is, however, also affected by domestic factors. Despite its rising renewable capacity, China remains heavily reliant on domestic coal for electricity. Last year, 58 per cent of its electricity came from coal. Yet coal-fired power plants also create air pollution and public unhappiness, and this creates an incentive to expand the drive towards renewable energy.

But while the national policy on the energy transition is clear, local governments wield considerable influence and they must balance energy priorities with the pursuit of national growth.