China’s Race for Energy Dominance and the Global Impact of Its Ambition

At the heart of the Tibetan Himalayas, the Yarlung Tsangpo River carves a path through the world’s deepest canyon system, culminating in a dramatic horseshoe-shaped bend known as the Great Bend. Once regarded as a sacred site by Tibetan Buddhists, this remote stretch is now the focus of China’s drive for energy supremacy. Here, the Motuo hydropower station is under construction, set to become the largest hydroelectric dam globally with a projected capacity of 60 gigawatts—three times that of the current record-holder, the Three Gorges Dam.

China’s quest for energy independence underpins such vast engineering feats. The nation’s drive is fuelled by an ever-expanding economy, a burgeoning middle class, and a relentless appetite for power. Analysts characterise China’s annual energy growth as equivalent to adding an entire Germany each year. The combination of traditional and renewable energy projects has become emblematic of a strategy determined by self-sufficiency rather than solely environmental concerns.

Over the past decade, China has dramatically expanded its renewable sector. Between 2014 and 2024, the country added 2,376 gigawatts of wind and solar capacity, accounting for half the global total, according to the International Energy Agency. Nuclear power also features prominently in the nation’s ambitions, with 58 reactors online and 33 more underway, a scale unmatched by any Western country.

This surging investment in renewables runs alongside an unwavering commitment to coal. China still relies on coal for 60 per cent of electricity generation and remains the world’s top emitter since 2006. Leaders, including President Xi Jinping, have consistently promoted coal as the cornerstone of national energy security. This approach enables the government to maintain energy autonomy and reduce reliance on foreign oil and gas, particularly important given China’s limited domestic reserves.

The relentless pursuit of electrification stretches beyond generation. Major subsidies for electric vehicles, expansive high-speed rail networks, and continued industrial electrification have collectively begun to diminish oil’s share in national energy consumption, solidifying power in the hands of domestic suppliers. Electricity’s share of end-use energy consumption rose from 21 per cent to 29 per cent over the past decade, while oil’s slice has stagnated, signalling a meaningful transition.

Chinese dominance in clean energy supply chains has significant global implications. The country produces 90 per cent of the world’s solar panels, over 60 per cent of wind turbines, and commands the rare earth market essential for many green technologies. Western governments increasingly voice concerns about dependency, citing potential economic vulnerabilities and national security threats.

Recent moves by Chinese firms in the United Kingdom highlight these geopolitical tensions. Investments in local wind and solar infrastructure have sparked debate among policymakers and industry observers. The question of how much Chinese involvement is acceptable in critical energy infrastructure remains unresolved, striking a delicate balance between economic pragmatism and safeguarding national interests.

Domestically, the costs are not only financial or political. Environmentalists warn that mega-projects like the Motuo hydro scheme threaten both sacred cultural sites and fragile ecosystems. The air in Chinese cities continues to bear the legacy of coal-fired power plants, illustrating the complexities and contradictions inherent in balancing development, energy security, and environmental stewardship on a national scale.