Analysis of regional energy efficiency and prospects for sustainable development of the energy sector in China

Since 2022, the geopolitical situation on a global scale has been making its adjustments and changes to the pricing and structure of the energy supply system, forcing countries to adjust the structure of their energy industry, re-examine foreign trade flows of energy products, and develop solutions regarding the level of energy consumption in enterprise sectors and households. This issue is particularly acute for China, as a country with a rapidly developing economy and high energy consumption needs. However, in addition to external factors, China also faces internal challenges for the energy sector. These factors include, for example, interregional imbalance in domestic production and energy consumption, the need for maximum decarbonization of the energy industry and transition to green and low-carbon energy, and its high-quality development. The significance of such internal factors is confirmed by the recent energy crisis in China, which manifested itself sharply in 2021. In this article, we analyze the internal energy problems of China, primarily in the context of interregional imbalances that have been emerging during the period 2000–2021. Our general purpose is to conduct an analysis and identify the primary causes of the energy shortage in the Chinese economy as well as the regional disparities in its distribution. The following tasks have been solved: the evolution of the situation regarding electricity shortages in China between 2000 and 2020 have been investigated; the primary causes of the electricity shortage in China have been identified; the regional disparities in energy consumption, energy production, and the level of energy deficit in China's provinces have been assessed. As a final summary, the ways to overcome difficulties and improve the quality and stability of the Chinese energy sector have been analyzed as well as the main trends in the development of the energy sector of China after the 2021 energy deficit crisis have been identified. We used qualitative and quantitative analysis methods as research tools. Based on the qualitative analysis using logical generalization and systematization methods, we analyze ways to overcome difficulties and improve the quality and stability of China's energy industry, and identify the main trends in the development of China's energy industry that have taken place since the 2021 energy shortage crisis. Concurrently we propose an analytical approach consisting of a comprehensive assessment of the cross-provincial structure for key aspects of the country's energy system: energy production, processing and consumption. We assess structural changes in these parameters caused by both regional characteristics of the provinces and changes occurring in the Chinese economy. To achieve this task, we use a specific tool – the Salai index. The calculation results allowed us to identify key patterns in the production and consumption of coal-based electricity, which provides additional information for regulating this energy sector in the context of the decarbonization process of China's energy system. • China, as a country with high energy consumption needs, faces internal challenges for the energy sector. • The important factor is interregional imbalance in domestic production and energy consumption. • The tasks of maximum decarbonization determines the need for its development and transition to green and low-carbon energy. • The main trends in the development of the energy sector of China after the 2021 is energy deficit crisis.