China’s electrification strategy helps reshape the global energy landscape?

The first half of 2025 marked a historic tipping point: renewables officially surpassed coal in global electricity generation. This milestone signals a major shift in the global energy landscape.

As the world transitions from fossil fuels to electrified systems, a new form of geopolitical influence is emerging: the electrostate. This concept captures two sources of power in the clean energy era — nations that lead in producing and exporting clean technologies, and those that strengthen their economies by electrifying and cutting fossil fuel dependence.

Nations that master clean energy production and digitalized electrification systems will wield unprecedented influence as “electrostates”. Among them, China stands out as the world’s first true electrostate, with electricity already accounting for 30 percent of its final energy consumption — a figure projected to reach 35 percent by 2030.

What distinguishes China, however, is not just scale but strategy. As Ember’s recent report highlights, China’s State-led clean energy investments are now the primary determinant of global decarbonization speeds. The critical question is: How did China achieve this, and what can the world learn from its model?

China’s electrostate transformation stems from deliberate long-term planning. Unlike economies reactive to market shifts, China embedded electrification into national policy frameworks over a decade ago.

When I engaged with China’s energy sector in 2010, the government was already orchestrating massive investments in grid modernization, nuclear power and renewables.

This aligned with what I’ve observed globally: electrification requires 10-year anticipation road maps. While many nations delayed infrastructure upgrades, China’s focus on incremental execution — from five-year plans to sector-specific targets — enabled it to build a cohesive ecosystem integrating generation, grid resilience and demand-side innovation.

China’s 2030 target of 1,200 gigawatts wind and solar capacity, for instance, was achieved in 2024 — six years early. Today, everything, everywhere is moving toward electricity. Looking ahead, projections suggest that China’s share of electricity in final energy use could rise from 55 to 70 percent by 2060, largely driven by industrial electrification, expanded renewable generation and electrified transport.

This was no accident. By synchronizing policy incentives, supply chain development, and market activation, China turned ambitions into actionable benchmarks.

As I noted at Davos, this planning proficiency is now a competitive advantage. Other economies, grappling with energy volatility, are recognizing that electrification cannot be optimized through short-term fixes alone.

In addition, artificial intelligence is the accelerator amplifying China’s electrostate leadership. In electrification, AI’s value lies not in replacing humans but in simplifying complexity. At Schneider Electric, we see AI as part of the team — yet people remain the center of progress.

AI is accelerating decisions and unlocking new levels of insight, but it’s people who create trust, drive creativity and turn ideas into impact. Technology may extend our capabilities, but human judgment remains irreplaceable. AI is a tool to democratize energy management — enabling technicians to interact with systems intuitively, using natural language rather than complex graphs.

Schneider Electric Shanghai Putuo factory, an end-to-end lighthouse, uses AI to slash product development cycles by 63 percent and boost productivity by 82 percent. Similarly, the Wuxi factory achieved a 90 percent reduction in emissions through AI-driven carbon tracking.

These cases reflect a broader trend: China’s integration of AI into industrial workflows. From AI-powered microgrids that optimize renewable consumption to AI-guided solar panel maintenance, China treats digitalization as an enabler of efficiency and safety. The key insight for global stakeholders is that AI’s return on investment hinges on domain expertise.

China’s success stems from pairing algorithmic intelligence with deep industrial know-how — a combination championed through initiatives such as the Schneider Electric AI Innovation Lab in Beijing.

China’s electrostate evolution leverages three interconnected transitions. First, its commitments to carbon peaking and neutrality shape global supply chains. For example, the rapid deployment of heat pumps, with 35 gigawatts installed in 2024 alone, is significantly displacing fossil fuels for heating, while the steel sector’s shift from coal blast furnaces to electric arc systems demonstrates decarbonization at scale.

Second, beyond hardware, China’s focus on grid digitalization ensures stability amid renewable intermittency. Investments exceeding $85 billion in 2024 upgraded grid capacity to support distributed energy resources, from electric vehicle charging networks to industrial microgrids. Intelligent energy management is no longer optional; it’s strategic.

The third transition is industrial modernization. The “new three” sectors (solar, batteries and EVs) grew three times faster than China’s GDP in 2024, generating $1.9 trillion — equivalent to Australia’s economy. This was fueled by policy certainty and a supplier ecosystem that scales innovation rapidly.

Can other nations replicate China’s electrostate model? Yes, but context matters. China’s unique scale allows cost advantages — it produces 80 percent of global solar PV modules and dominates critical mineral supply chains. Yet its broader lesson is systemic coordination.

Emerging economies might focus on leapfrogging legacy infrastructure via microgrids and AI-driven demand management, while advanced economies can emulate China’s planning rigor.

At the industrial level, collaboration is the multiplier. Whether improving grid flexibility or accelerating clean energy adoption, partnership has become the defining factor. To have the global impact we strive for, we need more alignment on standards, shared data and incentive structures that reward participation. When ecosystems collaborate — from buildings to data centers to infrastructure — we integrate renewables more effectively, maintain stability, and reduce costs for all. None of this can be done in isolation.

Schneider Electric is exporting China-tested solutions worldwide. Schneider’s partnership with StarCharge deploys Chinese EV charging tech in Europe, and collaborations with HyperStrong expand battery storage globally. These successes underscore that electrostate strategies thrive when localized — balancing global innovation with regional needs.

China’s electrostate journey reaffirms that electricity is the backbone of a sustainable future.

Its progress — driven by planning, AI integration, and sectoral synergy — offers a blueprint for nations aspiring to energy independence and climate resilience. The challenges ahead, from curbing coal reliance to managing data governance, require continued innovation.

But as China’s example shows, the future belongs to economies that electrify intelligently, democratize access and collaborate across borders. For global leaders, the message is clear: Electrification is no longer an option but an imperative — and those who invest today will shape tomorrow’s energy order.

The author is the executive vice-president of Energy Management at Schneider Electric.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.