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Published : 24 Jan 2026, 08:26 PM
China's electricity output and clean energy technology exports scaled record highs in 2025, LNG and coal imports contracted and crude oil imports nosed higher in another dynamic year for the world's largest power producer and energy consumer.
Here's a breakdown of China's key domestic and international energy market impacts as 2026 gets underway.
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POWER SHIFTS
China's imports of liquefied natural gas and coal both took a steep hit in 2025 from the year before as the country's power system gets cleaner and less reliant on fossil fuels.
China's liquefied natural gas oil imports fell by 15 percent in 2025 to the lowest since 2022.
Total imports of LNG were 66.6 million metric tonness in 2025, which marked a 11.6 million ton, or 15 percent, drop from 2024 to the lowest annual import sum since 2022, according to data from commodities intelligence firm Kpler.
The downturn in LNG import demand was spurred by reduced industrial activity amid an enduring manufacturing soft patch.
That said, China's power generators boosted gas-fired electricity production by 5 percent in 2025 to a record, which helped underscore total demand for natural gas even as LNG imports sagged.
The share of natural gas within China's electricity network dropped to a multi-year low of 2.8 percent, however, which highlighted that gas retains only a minor role in the electricity sector.
China's imports of thermal coal, used in power stations, slumped by 11 percent or by 40 million metric tons to around 308 million tons last year, Kpler data shows.
China's thermal coal imports dropped 11 percent, met coal imports fell 24 percent and coke imports rose 45 percent in 2025.
That was the lowest annual import total since 2022, and comes as power firms seek to reduce coal use in electricity generation and as Beijing seeks to underpin the domestic coal mining sector by managing the phase-down of coal use for power.
Imports of metallurgical coal, used by steelmakers, dropped 24 percent as the country's hobbled construction sector continued to eat into demand for building materials.
Imports of coke, used in blast furnaces, rose 45 percent last year as domestic supplies dried up following a drop in national steel output to seven-year lows.
Overall demand for construction-related materials is expected to remain soft in China until its property sector grows again.
CLEANING UP
While China's appetite for coal and gas contracted last year, domestic generation of clean electricity continued to march higher.
Clean electricity supplies were 4,326 terawatt hours (TWh) in 2025, according to think tank Ember, a 15.4 percent jump from the year before.
China's total electricity output climbed 5 percent to new highs in 2025 on record clean power production.
A 43 percent surge in solar generation alongside a 14 percent expansion in wind output were the main drivers of the clean power climb.
With the country's mammoth manufacturing sector still operating below capacity due to tepid local and international consumer demand, power firms were able to cut back on coal-fired generation and still lift overall electricity supplies in 2025.
Indeed, total electricity output rose by 5 percent to a record 10,421 TWh, which marked the seventh year in a row that China's total electricity output expanded by at least 4 percent.
Further deployment of largely home-made solar, wind and battery storage systems is expected throughout 2026, which should help sustain China's clean power output momentum through the coming years.
CRUDE GROWTH
Following a rare year-over-year drop in crude oil imports in 2024, China's crude purchases rose in 2025, denting expectations that its oil imports had entered perpetual decline.
China's total crude oil imports rose by 1 percent in 2025 following a 2 percent contraction in 2024
Total crude oil imports were 3.75 billion barrels, according to Kpler, which was a 43 million barrel, or 1.1 percent, gain from the previous year.
With demand for refined products holding largely flat last year, much of the imported crude was used to replenish stockpiles, which Beijing views as an essential buffer against rising global geopolitical risk.
More stockbuilding is expected through 2026, which alongside any recovery in overall industrial activity could help sustain China's oil import orders going forward.
EXPORTED SURPLUS
China can also be expected to maintain its strong export pace of electric vehicles, battery storage systems and solar panel components in 2026 and beyond.
The world's leading manufacturer of clean energy technologies - which also include parts for wind farms, power grids and heating and cooling systems - produces far more of each category than can be consumed at home.
As a result, China's total clean tech exports have blasted to record highs in recent years, surging by more than 20 percent in 2025 alone to around $222 billion.
Battery, EV and grid component exports all hit records in 2025
Batteries were by far the most lucrative earner, generating $82 billion in export receipts, while EV exports were valued at $69 billion. Both were an annual record.
China's exports of grid components and heating and cooling equipment also scaled fresh highs in 2025 of around $19 billion and $17 billion respectively, according to Ember.
Exports of wind farm parts also hit a new high of about $5 billion, but export sales of photovoltaic solar modules posted an 8 percent drop to around $30 billion as the global rush into renewables dropped a gear following a years-long surge.
Even so, with top markets such as Europe, Southeast Asia and the Middle East expected to continue expanding their clean power networks, China looks set to retain a major influence on nearly all parts of the global energy system in 2026 and beyond.
[Gavin Maguire is the Global Energy Transition Columnist for Reuters Breakingviews. He was previously Asia Commodities and Energy editor.]
