In terms of the power supply, Xi said China must accelerate the construction of a power system that is “green and low-carbon, secure and abundant, economically efficient, flexible, and intelligent in supply and demand coordination”.

“[China] should better promote the energy production and consumption revolution, and ensure national energy security,” he said.

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Xi’s remarks come as the Ukraine war has raised uncertainties for China – the world’s largest energy importer and consumer – amid a more politicised global energy market, and a persistent power crisis amid a decarbonisation campaign and climate change.

The commission also heard that the country needs to enhance market supervision, improve market order, and promote fair competition in the oil and gas market, while deepening the reform of the reserve system to meet any urgent demands, Xinhua said.

China’s oil and gas sector – especially the upper-stream exploration and exploitation – has long been dominated by state-owned enterprises, and the monopoly has resulted in a lack of both efficiency and international competitiveness. This further adds to national security concerns, as the country imports more than 70 per cent of its crude oil and more than 40 per cent of its natural gas.

Since 2017, the country has been promoting a market-oriented reform of the sector, including opening up to private and foreign capital.

For the power sector, meeting attendees were reportedly told the country should “scientifically and rationally design the new power system’s construction path”, and gradually reduce the proportion of traditional energy sources “in a planned and step-by-step manner on the basis of safe and reliable replacement from renewable energy”.

In September 2021, China’s top economic planner rolled out a “dual-control” plan to ramp up oversight and control over the nation’s energy-intensive activities.

Now China is saying that for this “dual-control” initiative to reduce energy intensity and limit total energy consumption, the country should “establish the new before abolishing the old”.

“It is necessary to stabilise the pace of work, strike a balance in the relationship between development and carbon-emission reductions, seek truth from facts, act within our capabilities, and scientifically adjust and optimise policy measures,” the meeting attendees were told.

Hou Yunhe, an associate professor with the Department of Electrical and Electronic Engineering at the University of Hong Kong, said comments like these signal a shift away from a decarbonisation approach now considered too radical and blamed for power shortages in the past three years.

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“The problem with renewable energy is the volatility in electricity generation, as wind or solar energy creates power only when there is wind or sunshine,” he said.

He added that too much renewable energy in the power grid means that the power generation may not be able to meet demand, which leads to problems in the systematic balance of the grid and ignites energy-security concerns.

“But now, based on the experience in the past few years, China has realised that the push for renewable energy should not be too rushed, so now it means they have become more technical and realistic,” Hou said.

The meeting also called for technology, market mechanisms and business model innovation in the market-oriented reform of the power sector, as well as for a better combination of an “efficient market” and “conditionally active government”.