Energy production
China’s energy production has grown rapidly since 1980, but it has continued to fall considerably short of demand. This is partly because energy prices were long held so low that industries had few incentives to conserve. Increasingly, however, demand has outstripped supply. In addition, it has often been necessary to transport fuels (notably coal) great distances from points of production to consumption. Coal provides about two-thirds of China’s energy consumption, although its proportion is slowly declining. Petroleum production, which grew rapidly from an extremely low base in the early 1960s, has increased much more gradually from 1980. Natural gas production still constitutes only a small (though increasing) fraction of overall energy production, but gas is supplanting coal as a domestic fuel in the major cities.
China’s electric-generating capacity has expanded dramatically since 1980, and the proportion allocated to domestic consumption also has grown considerably. Some four-fifths of all power generated is at thermal plants, with nearly all the rest at hydroelectric installations; only a tiny proportion is from nuclear energy, from plants located near Shanghai and Guangzhou.
China: Breakdown of renewable energy by sourceEncyclopædia Britannica, Inc.