The first publicly disclosed meeting of the Central Leading Group for Financial and Economic Affairs focused on energy security strategy, showing that energy issues have become a key concern for senior leadership.

On June 13, the Central Leading Group for Financial and Economic Affairs held its sixth meeting, at which General Secretary Xi Jinping proposed a “revolution” in four areas: energy consumption, energy supply, energy technology and the energy system.

The National Energy Administration responded to the meeting of the Central Leading Group for Financial and Economic Affairs at the first opportunity. On June 13, its official website published content related to a director's office meeting, stating that National Energy Administration Director Wu Xinxiong was studying and arranging five key tasks to be organized and implemented in the near term, including drafting and implementing major matters determined in the National Energy Development Strategy Action Plan (2014-2020), China's Energy Security Strategy, and the Work Plan for Strengthening Air Pollution Prevention and Control in the Energy Sector.

Lin Boqiang, director of the China Energy Research Center at Xiamen University, analyzed for a Yicai Daily reporter that the impact of the energy system revolution is expected to be very large. A revolution shows greater action and determination than reform, and major institutional moves are expected next. Energy regulation also deserves attention; in the future, regulation will be more law-based, changing the practice of project approval.

This is the first time officials have proposed in parallel a “revolution” in energy consumption, supply, technology and the system. As early as 2012, the report of the 18th National Congress proposed promoting a revolution in energy production and consumption and ensuring national energy security.

The 2013 energy work conference took this as its theme and deployed the year's energy work. It proposed increasing effective domestic energy supply, vigorously developing new and renewable energy, controlling total energy consumption, strengthening energy technology innovation, deepening energy system reform, and at the same time advancing international energy cooperation.

The 2014 energy work conference continued this tone, with the National Energy Administration emphasizing the need to promote reform in the electricity, oil and gas, and coal sectors and strengthen energy regulation.

A Yicai Daily reporter's follow-up found that from the second half of last year to early this year, the National Development and Reform Commission and the National Energy Administration also took the lead in formulating plans for oil and gas reform and electricity system reform.

In April this year, Premier Li Keqiang chaired the first meeting of the new National Energy Commission. At that time, the formulation was still “promoting a transformation in the mode of energy production and consumption.” At the same time, emphasis was placed on promoting the launch of a batch of major projects and encouraging various investment entities to enter the energy development field in an orderly manner and compete fairly.

Subsequently, the National Development and Reform Commission announced 80 infrastructure projects to encourage social capital investment, including 27 energy-related projects. However, since the 18th National Congress, amid the wave of reform, the biggest move in energy system reform has been the reorganization of the National Energy Administration. Oil and gas reform and electricity system reform, which have drawn strong external calls, have basically been “advanced in small steps,” and no reform plan has yet been issued.

At the above meeting, Xi Jinping clarified the content of the four “revolutions.” He also said that international cooperation should be strengthened in an all-round way to achieve energy security under open conditions.

Specifically, efforts should be made to promptly formulate a strategy for the revolution in energy production and consumption through 2030 and to study the energy plan for the 13th Five-Year Plan period. A batch of energy efficiency standards should be promptly revised; all outdated ones should be revised quickly, updated regularly and truly enforced.

Pragmatically advance “Belt and Road” energy cooperation and increase oil and gas cooperation with Central Asia, the Middle East, the Americas and Africa. Increase oil and gas resource exploration and development, strengthen the construction of oil and gas pipelines and oil and gas reserve facilities, improve the energy emergency response system and capacity building, and improve the energy statistics system.

Actively advance energy system reform and promptly formulate an overall plan for electricity system reform and oil and natural gas system reform.

Lin Boqiang told the reporter that raising energy security to such a high level is very worthy of attention and also requires continued follow-up research.

Industry insiders interviewed by the reporter said that the energy system revolution still depends on substantive action.