The Energy Law of the People’s Republic of China will come into effect on January 1, 2025. Experts interviewed by China News Service believe that this law will promote the transformation and development of China’s energy sector in multiple aspects.

　　The introduction of this Energy Law fills the gap in overarching legislation in the energy sector. Chen Xinghua, Deputy Secretary-General of the Energy Law Research Association of the China Law Society, pointed out that energy development is systemic in nature, and some issues cannot be effectively addressed by relying solely on individual laws. For a long time, China has lacked a fundamental, overarching piece of legislation.

　　Wang Peng, Executive Dean of the National Institute for Energy Strategy Development at North China Electric Power University, further pointed out that under the original single-law regulatory framework, different energy types operated independently, leaving gaps in coordination. Under the “dual-carbon” goals, energy is of paramount importance, and there is an urgent need for a law to guide energy development and transformation.

　　The Energy Law adopted this time consists of nine chapters and sets forth legal provisions at the legislative level on fundamental and critical issues in the energy sector, including energy planning, energy exploration and development, the energy market system, energy reserves, and emergency response. Regarding specific impacts, experts believe that the enactment of the Energy Law has clarified the direction for industry development and boosted investor confidence.

　　Wang Peng pointed out that, in the previous phase, the industry was rather confused about the development of biomass energy. However, Article 26 of the Energy Law now explicitly encourages the rational development and utilization of biomass energy, thereby providing clear guidance for the industry’s growth. Moreover, the Energy Law has legally formalized the positioning of various renewable energy sources—such as coal, oil, gas, and others—facilitating all stakeholders in accurately grasping development trends.

　　He believes that the enactment of the Energy Law has legalized the effective systems, measures, and rules that have been in place in recent years, clarified the direction for industry development, bolstered the confidence of market operators, and encouraged them to make bolder investments in energy.

　　The Energy Law also stipulates, “Support all types of business entities to participate fairly in competitive energy-sector activities in accordance with the law and market rules.”

　　Chen Xinghua believes that China has long been promoting reforms in its energy system, and the development of a market-oriented energy sector has now yielded tangible results. The Energy Law explicitly enshrines, in legal terms, the encouragement of diversified investment and the protection of investors’ rights, which will boost investor confidence in the energy market.

　　Currently, China's new energy development faces challenges in absorbing and integrating renewable energy. The introduction of the Energy Law will help address these challenges.

　　Article 22 of the Energy Law stipulates: “The energy authority under the State Council, together with relevant departments under the State Council, shall formulate medium- and long-term development goals for the exploration and utilization of non-fossil energy sources, monitor the status of non-fossil energy exploration and utilization on an annual basis, and publicly disclose such information to the public.”

　　Yang Lei, deputy director of the Institute for Energy Studies at Peking University, pointed out to China News Service that the Energy Law requires the development of plans for replacing fossil fuels with non-fossil energy sources and conducting annual reviews—this effectively establishes a mechanism that creates pressure for progress. Building on this foundation, efforts are also being accelerated to advance the construction of an energy market system. Through market-oriented reforms, we can create a system that better optimizes resource allocation. For example, if the electricity spot market can operate effectively, it will help address demand-side response issues and foster the development of new business models.

　　Yang Lei said that the Energy Law mentions multiple times the importance of developing and utilizing energy resources nearby, encourages the development of distributed energy systems and complementary multi-energy systems, and also addresses how to better integrate and utilize volatile wind and solar resources.

　　On the one hand, there’s a mechanism driven by external pressures; on the other hand, there’s market-driven momentum. Coupled with appropriate guiding measures, this approach can unleash the vitality needed to create new business models. “It’s still very convincing,” said Yang Lei. It not only addresses current challenges but even provides guidance for long-term development in the future.