Sechin Told What Allowed China to Turn Into a Global Energy Power
The balanced development of China has allowed the country to rightfully take the place of a global energy power, stated Igor Sechin, Executive Secretary of the Commission under the President of the Russian Federation for Strategic Development of the Fuel and Energy Sector and Environmental Security, at the XXIX St. Petersburg International Economic Forum.
"After the Soviet Union collapse, the United States believed there would be no real rival ever. In recent decades, China demonstrated not only economic success but also remarkable science and technology advances, enabling it to become a global energy power," Sechin said, also quoting PRC President Xi Jinping that scientists form the backbone for promoting Chinese-style modernization.
Sechin also noted that in the strategic confrontation of technological leaders, China shows the insurmountable advantage of a planned economy and its economic model.
Igor Sechin emphasized that China turned out to be the most prepared for the Hormuz crisis and its consequences thanks to a balanced approach to ensuring energy security based on a realistic assessment of risks.
"Thoughtful government policies have enabled significant economies of scale in the development of renewable energy sources.China has created an affordable urban and intercity transport infrastructure for its domestic market. Following the closure of the Strait of Hormuz, this has allowed motor fuel consumers to seamlessly switch to accessible alternatives, such as electric vehicles, electric buses, gas-powered trucks, subways, electric trains, and electric taxis," said Sechin. China has a t angible competitive advantage in electricity prices: it is about 9 cents per kilowatt-hour for industry (72% lower than in Germany, and 59% lower than in France) and about 7 cents per kilowatt-hour for the population (58% lower than in the US). " Only Russia stands at a similar level," emphasized Igor Sechin.
He stated that unlike Western countries, in China the task of containing the growth of electricity prices is successfully solved, including through optimizing the distribution of energy resources and computing power. Igor Sechin cited as an example the PRC's new energy management plan, which prescribes the placement of data centers in regions rich in new energy resources, as well as a policy of encouraging the conclusion of multi-year power purchase agreements by data centers.
" That means that if necessary the issue of constructing additional generation capacity is resolved at the expense of the data centers themselves, rather than the consumers," Igor Sechin explained.
He also cited as an example the Fifteenth Five-Year Plan, according to which technologies should become the key driver of China's growth. To achieve this goal, noted Igor Sechin, is impossible without the development of the energy sector, and Beijing is solving this problem by investing in the development of RES simultaneously with a significant reduction in the cost of electricity produced from renewable sources.
Sechin noted that China operates the world's largest power system with an installed generation capacity of about four thousand gigawatts, which is more than three times higher than this figure in the US. In 2025 alone, over 540 gigawatts of new generating capacities were commissioned in China, which is equivalent to half the installed capacity of the entire European Union.
" Simultaneously with the development of renewable energy sources, China continues to construct new coal-fired power plants. For example, last year, 78 gigawatts of coal power capacity were commissioned and new projects with a total capacity of 161 gigawatts are planned. As a result of this policy, over the next 10 years, the share of coal in China's total energy consumption will remain above 40%," stated Igor Sechin, adding that China is implementing the largest program for the development of nuclear generation.
He also noted China's leadership in the field of energy storage: the country annually commissions about half of the world's volume of new battery storage system capacities. " In December 2025 alone, China commissioned 65 gigawatt-hours of such capacity, which is 40% more than the US commissioned throughout the last year," the executive secretary of the Fuel and Energy Complex commission noted. In parallel, China leads in investments in power grids, investing about 100 billion dollars in this sector.
"Strengthening energy security is part of a comprehensive program to mobilize domestic reserves implemented by China. Its goal is to prepare for a worst-case scenario of confrontation with the West, which could involve a large-scale disruption of supplies of all types of goods and services, including a trade blockade," Igor Sechin said.
For this, he believes, a "strategic rear" is being created in China in various industries: from food to microelectronics.
"Importantly, these reserves are intended to simultaneously serve as growth points for "productive forces of a new quality," fully functioning in peacetime," summarized Igor Sechin.
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June 6, 2026