Outlook | Strategic Considerations for Future Energy Development

Author | Chen Yan

This year’s government work report for the first time mentions “future energy,” placing it alongside cutting-edge fields such as quantum technology, biotech manufacturing, embodied intelligence, brain-computer interfaces, and 6G, and ranking it at the top of the list.

According to the “Implementation Opinions on Promoting Innovation and Development of Future Industries” issued by seven departments including the Ministry of Industry and Information Technology in 2024, future energy focuses on key areas such as nuclear energy, nuclear fusion, hydrogen energy, and biomass energy. It also includes subdivided directions like new crystalline silicon solar cells, thin-film solar cells, and new energy storage. Clearly, future energy is a cluster of frontier energy technologies characterized by high technology, renewability, low or zero carbon emissions. Many of these energy sources are still in the incubation or early industrialization stage, possessing strategic, leading, and disruptive advantages.

The shift from “new energy” to “future energy” reflects a deepening understanding of energy strategy.

Developing future energy is a strategic move to strengthen the energy security defense line. Currently, the global energy landscape is undergoing profound adjustments, with geopolitical conflicts continuously impacting international energy markets. China’s resource endowment of abundant coal, but scarce oil and gas, along with a high dependence on foreign oil and gas, has always posed hidden risks to energy security. Investing in future energy is a strategic effort to reduce reliance on fossil fuels, enhance energy independence, and firmly safeguard the bottom line of energy security.

Developing future energy is also a long-term strategy for a green transformation. Achieving the “dual carbon” goals and advancing ecological civilization depend heavily on energy. Investing in future energy is crucial for promoting a comprehensive green transformation of economic and social development, and an inevitable choice for driving changes in development methods through energy structure adjustments.

Furthermore, developing future energy is a winning strategy to create new advantages in international competition. Currently, global competition in energy technology is intensifying. Those who lead breakthroughs in core technologies will seize the high ground in industrial development and dominate international discourse, laying a solid energy foundation for high-tech industries like artificial intelligence and data centers. Prioritizing future energy in the future industry is a strategic decision to seize opportunities of the era and gain long-term competitive advantages.

Fostering and developing future energy relies on technological innovation as the core engine. Identifying key breakthrough points, creating application scenarios for technological iteration, and strengthening long-term stable funding are three coordinated efforts to accelerate the industrialization of future energy.

Strengthening research on key core technologies is the top priority for developing future energy. Different energy technologies are at various stages: photovoltaic and wind power are mature for large-scale application; hydrogen energy is transitioning toward commercial demonstration; nuclear fusion and space-based solar power are still in basic research and technical development phases. Promoting future energy development requires emphasizing original innovation and tackling key core technologies, deepening industry-university-research collaboration, overcoming technical bottlenecks in high-efficiency energy storage, hydrogen transportation and storage, and nuclear fusion engineering, and accelerating the deployment of first-of-its-kind and batch technologies.

Advancing major engineering projects is an important path toward industrialization. Among the 109 major projects listed in the 14th Five-Year Plan, energy projects are prominent and critical. Large-scale energy projects such as the Yajiang Hydropower, “Shago Desert” new energy base, and offshore wind power bases, with investment in the trillions, drive industrialization through engineering, providing a solid foundation for the large-scale development of future energy. Additionally, leveraging China’s complete industrial chain and vast market advantages creates a favorable ecosystem for technological iteration, pilot demonstrations, and industry integration of future energy. Supporting local and private sector innovation in models, business formats, and scenario integration, along with open development of key application scenarios in industry, transportation, and construction, and improving standards and policies, will promote technological maturity and market-driven industry growth, ensuring the healthy development of future energy.

Funding support and risk sharing are vital for technological breakthroughs. Future energy technologies involve long cycles, high risks, and substantial investments, requiring strengthened long-term stable support. The government work report proposes establishing mechanisms for increased investment and risk sharing in future industries, emphasizing the effective use of various industry funds, phased and categorized precise investments, and the creation of scientific evaluation and fault-tolerance mechanisms to safeguard safety. Specifically, basic research and foundational innovation need long-term stable national support; pilot and demonstration phases should involve coordinated efforts among government, central enterprises, local platforms, and social capital to build application scenarios; and industrialization relies more on market forces and patient capital to drive development.

The future energy development path is now clear. It is more than just a technological concept; it embodies a clean, low-carbon, safe, and efficient energy future. During the 14th Five-Year Plan period, we must maintain strategic resolve and patience, accelerate turning future energy into reality, and deeply integrate it into all aspects of social life.■