China’s two-year action plan to drive growth in the power equipment sector focuses on green energy, technological innovation, and global cooperation. Here’s what it means for the future of energy.
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| China’s two-year plan seeks to boost revenue growth in traditional and new energy equipment sectors while pushing for international partnerships in wind, solar, and energy storage. Image: TAE Technologies |
Beijing, China — September 12, 2025:
China's newly announced two-year action plan for its power equipment sector has stirred significant interest, particularly in the context of global green energy transformation and the country’s long-term energy goals. With a focus on expanding renewable energy sources, technological innovation, and international collaboration, this ambitious blueprint lays the groundwork for the future of energy in China and beyond. But what does this plan mean for the country’s energy landscape, and how will it influence global markets?
The two-year plan, covering the 2025-2026 period, targets 6 percent annual revenue growth in traditional power equipment, while leading enterprises are expected to see 10 percent revenue growth. However, this action plan is not just about monetary targets — it marks a significant push towards greener, more sustainable energy solutions. At the heart of this drive is China’s shift towards low-carbon energy, a policy shift aimed at reducing reliance on fossil fuels and increasing reliance on clean wind and solar power. These measures align with the country's broader objectives to establish a new energy system, which incorporates both green and intelligent solutions.
One key element of the plan is the acceleration of wind power and solar energy projects. These include the large-scale development of offshore wind and photovoltaic bases, which will play a critical role in ensuring China meets its climate and energy targets. The plan also proposes increased investments in energy storage technologies, which are necessary to overcome one of the main challenges of renewable energy — intermittency.
Another major facet of the plan is the phasing out of outdated coal-fired power plants. This is part of a broader push to decarbonize the country’s power grid while expanding capacity in renewable energy sectors. It reflects China's long-standing commitment to its climate goals, even as the country continues to experience rapid industrialization and energy demand growth.
Moreover, the plan emphasizes international collaboration, with a focus on expanding supply chain cooperation for wind, solar, and energy storage technologies. This is particularly important in light of the global energy crisis and the increasing importance of international partnerships to meet climate goals. By strengthening its links with emerging markets in Africa, Asia, and other regions, China aims to secure its position as a leader in the global renewable energy market, driving both innovation and sustainability across the globe.
China is also keen to modernize its energy infrastructure, particularly by enhancing its capacity for smart grids and integrating information technology with power equipment manufacturing. The action plan mentions efforts to improve grid connectivity and digital energy management systems — a crucial development for ensuring efficiency, reducing waste, and facilitating a shift toward intelligent energy systems.
Beyond technological improvements, China’s efforts to modernize its energy infrastructure also underscore its desire to move beyond national energy solutions and engage with international stakeholders. In line with this, there is a clear emphasis on international technical standards, certification processes, and mutual recognition of energy technologies, which could pave the way for smoother cross-border energy projects.
So, how will this plan affect the global energy market? For one, China's green energy sector is poised for accelerated growth, which could drive down the cost of renewable technologies. Additionally, the expansion of energy storage systems and smart grids may unlock new avenues for energy cooperation, benefiting global markets that rely on intermittent energy sources.
Ultimately, the success of this action plan could serve as a model for other nations seeking to transition toward more sustainable, technologically advanced energy systems. While China leads this global transformation, its collaboration with emerging economies may play a pivotal role in accelerating the adoption of renewable energy across the world.
In conclusion, China’s two-year action plan marks a critical step forward in its ongoing push to become a global leader in clean energy. The focus on green technology, international cooperation, and advanced energy systems signals China’s commitment to not only meeting its internal energy demands but also leading the way in the global energy transition. As the world grapples with climate change, China’s efforts could set a new precedent for what’s possible when a nation combines innovation, sustainability, and global collaboration.