Amid growing concerns about the movement of crude oil through the Strait of Hormuz and the long-term risks of escalating war between the United States, Israel and Iran, China is accelerating financing and working on several new non-fossil energy projects, including those previously planned.
Imports still account for 80% of China’s oil needs, half of which goes through the Hormuz waterway, now blockaded by Iran. While the Chinese Ministry of Foreign Affairs. He said in a statement that the country “will do whatever is necessary to protect its energy security,” while observers such as Columbia University’s Center for Global Energy Policy are skeptical that it can play an active role in the conflict, with up to 1.4 million barrels of oil currently in reserve in the country and crude oil accounting for just 20 percent of total national energy consumption in 2024.
Wind, nuclear, solar and hydro generated more than a third of China’s electricity by 2025, according to statistics from government agencies, with more than half of the expanded installed transmission capacity now coming from clean sources.
“The current crisis in Iran mainly provides a strong narrative for the government to justify these investments and possibly shift more fiscal support for energy projects,” Dan Wang, Singapore-based China director at think tank Eurasia Group, told ENR.
Recent government announcements point to new developments in two major nuclear power projects, a pumped hydro storage development, electric vehicle charging stations, a new transmission line and new equipment enabling the use of hydrogen power.
“The looming energy crisis as a result of this war will undoubtedly motivate China to accelerate these non-fossil energy projects to reduce its dependence on imported crude oil and gas,” Zhiqun Zhu, professor of international relations at Bucknell University and director of its China Institute, told ENR.
Nuclear power plants are moving forward
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The steps taken this month include connecting the first two units of China’s San’ao-1 nuclear power plant, about 2.2 MW of capacity, to the national grid in Zhejiang province and the Yangtze River Delta region, China General Nuclear Corp. announced on March 12. project with the participation of the private sector. Reports cite the project’s construction cost of $10.2 billion for its first phase.
When completed, the project will feature six Chinese-made pressurized water reactors using the Hualong One design, generating 54 billion kWh of energy annually. It will save more than 16 million tons of coal and more than 50 million tons of CO₂ emissions every year, China General Nuclear said.
China also announced in early March an acceleration of the estimated $5.6 billion first phase of the $16.7 billion Bailong nuclear power plant in Guangxi province. It will feature two CAP1000 reactors, described as an improved version of the AP1000 design developed by US-based Westinghouse. Construction of the first unit began in December 2025. Once fully operational, the first two units would provide 20 billion kilowatt-hours of energy annually.
At a meeting earlier this month of the National People’s Congress, China’s parliament, the government also revealed plans to create a new target of 100 GW of pumped hydro storage to stabilize the grid as it integrates more wind and solar power.
The China Academy of Aerospace Propulsion Technology also announced on March 9 four new hydrogen energy products focused on fuel production, storage and supply to advance the industry’s large-scale commercial application. The government also unveiled plans to create zero-carbon transport corridors involving the construction of hydrogen charging and high-powered electric vehicle charging “clusters” along major roads to replace diesel-dependent freight transport.
China’s National Reform Development Commission also announced a plan to build a third line on the 750 kV Hami-Dunhuang transmission system connecting Xinjiang and Gansu provinces to also allow more clean energy to be exported to other parts of the country. It is scheduled to end in March 2027.
