On July 10, the China Electricity Council (CEC) released the “China Power Industry Annual Development Report 2025” (hereinafter referred to as the “Report”), which indicates that, taking into account factors such as electricity consumption growth, power grid construction, and uncertainties like temperature fluctuations, the national power supply and demand situation in 2025 is expected to remain generally balanced.
According to Hou Wenjie, Director of the CEC’s Statistics and Data Center, since the start of the 14th Five-Year Plan, the annual growth rate of electricity consumption has consistently exceeded the GDP growth rate at constant prices, with China’s electricity elasticity coefficient remaining around 1.2. The electricity elasticity coefficient is closely related to industrial restructuring, shifts in economic drivers, and the transition to green energy. For example, the rapid development of the digital economy—represented by the internet, big data, cloud computing, and artificial intelligence—has become a key driver of growth in the tertiary sector. Core infrastructure supporting the digital economy, such as data centers and computing hubs, requires substantial electricity, leading to rigid growth in power demand. Data shows that from 2018 to 2024, electricity consumption in the internet and data services sector grew at an average annual rate of 19.2%.
Looking at this year’s trends, China’s electricity consumption has maintained steady growth. Data released by the National Energy Administration on June 20 shows that in the first five months of this year, total electricity consumption reached 3,966.5 billion kWh, a year-on-year increase of 3.4%, with industrial power generation from large-scale enterprises totaling 3,726.6 billion kWh. Monthly data indicates that since February, the year-on-year growth rate of electricity consumption has consistently exceeded 4%.
“The growth in electricity consumption this year reflects the resilience and steady progress of the national economy under pressure, demonstrating the vitality and adaptability of China’s economy,” Hou Wenjie noted. For instance, in the first five months, electricity consumption in the secondary industry reached 2,591.4 billion kWh, up 2.2% year-on-year. Within this sector, electricity use in high-tech and equipment manufacturing rose by 3.3%, surpassing the overall growth rate of the manufacturing industry. Notably, industries such as automobile manufacturing, general equipment manufacturing, specialized equipment manufacturing, and computer and electronic equipment manufacturing all maintained growth rates above 4.5%. Since May, electricity consumption in most consumer goods manufacturing sub-sectors—except textiles—has rebounded, indicating strong economic resilience amid external challenges.
The Report predicts that, considering China’s current economic growth potential and macro-control policies, total electricity consumption in 2025 will increase by 5% to 6% year-on-year.
Han Fang, Deputy Director of the CEC’s Planning and Development Department, highlighted that significant progress has been made in building a unified national electricity market. Provincial-level spot electricity markets are accelerating, with six already in formal operation and 19 in trial operation.
