The National Energy Administration (NEA) said on Monday that it will support the participation of private enterprises in various energy projects, as part of an effort for the energy industry to boost the private economy.
The remarks were made at a press conference held by the NEA on Monday, where Zhang Xin, an NEA official, said that the agency supports private enterprises to invest in the construction of infrastructure projects such as hydropower, oil and gas storage facilities, and liquefied natural gas receiving stations, and support private enterprises to participate in oil and gas pipeline trunk or branch line projects.
"We will also support private companies to invest in projects in deserts, Gobi and wasteland areas, and encourage private enterprises to build projects such as solar thermal power generation facilities, while pursuing the diversified utilization of biomass energy and renewable energy heating," Zhang said.
The NEA will also make it more convenient for private enterprises to enter the competitive segments of the oil and gas market, and support private construction enterprises to actively participate in power grid construction, Zhang noted.
The entry of private enterprises into the energy market has added more competitive players, which helps to promote fair competition, improve market efficiency and enhance the stability and resilience of energy supply, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Monday.
Lin further noted that private enterprises, known for their strong innovation drive and flexibility, can quickly respond to market demands and drive the application and development of new technologies and business models.
For example, they have made rapid progress in emerging fields like new-energy storage, virtual power plants and smart microgrids, Lin said, adding that their diversified investments in the energy sector contribute to the optimization of the energy structure.
The NEA's move on Monday comes as the Chinese government is taking concrete efforts to promote the healthy and high-quality development of the country's private sector.
The private sector plays a key role in China's economy, making up more than 90 percent of all businesses nationwide and accounting for more than 70 percent of the country's technological innovation, according to official data.
In February, the country held a high-level symposium on private enterprises, signaling strong support for the sector.
China aims to better promote private economic development by introducing stronger support measures and ensuring fair law enforcement, Huang Haihua, spokesperson for the Legislative Affairs Commission of the National People's Congress Standing Committee, told a press conference on Friday. A draft private sector promotion law will be submitted for its third review at a session of the country's top legislature this week, according to the Xinhua News Agency.
While private firms have enhanced their involvement in infrastructure projects such as oil and gas storage facilities, liquefied natural gas receiving stations, and oil and gas pipelines, their market share remains relatively small, said Lin, adding that with continued policy support and an increasingly optimized market environment, their contribution to the country's energy construction is expected to rise further.
A growing number of private enterprises have been deeply involved in the construction of new-energy systems. Data from the NEA showed that private enterprises account for about 60 percent of China's wind power equipment manufacturers, and the vast majority of photovoltaic equipment manufacturers are private enterprises.
In the field of nuclear power investment, private enterprises such as Geely Group and Wanxiang Group have taken equity stakes in projects since 2020. In the five nuclear power projects approved in August 2024, with a total investment of 245.5 billion yuan ($33.64 billion), all were to have a 10 percent private investment ratio, according to the NEA.
