As global supply volatility intensifies, Premier Li Qiang has called for faster development of a “new-type power system” to accelerate the green transition and expand the use of artificial intelligence (AI) in the sector.

During a three-day visit to the southwestern province of Sichuan, Li stressed the need to expand green electricity supply and optimise the energy mix to bolster security and support economic growth.

He urged market players to explore new grid architectures, improve system-wide coordination and regulation, and build a safer, low-carbon, flexible and intelligent power system, state-run news agency Xinhua reported on Wednesday, the final day of Li’s trip.

“The construction of a new-type power grid is of great significance for ensuring energy security and promoting green development,” he said.

China leads the world in renewable energy capacity, but has long struggled to smooth out the distribution of new energy resources with electricity demand. Constraints in transmission and dispatch systems have further limited the efficient use of renewable power.

To address these issues, Beijing has pushed to develop a modern power system centred on renewables in recent years, using digital and smart technologies to allocate electricity more flexibly – a step also seen as critical to achieving its carbon neutrality goal by 2060.

Such systems could further reduce the world’s second-largest economy’s exposure to fossil fuels at a time of heightened geopolitical risks. Disruptions to global energy flows through the Strait of Hormuz during the US-Israeli war in Iran have highlighted the vulnerability of supply chains.

During visits to the cities of Chengdu and Deyang, Li called for stronger support for innovation in photovoltaic technologies, urging companies to increase research and development spending, overcome technical bottlenecks and accelerate large-scale deployment of new technologies.

He also encouraged firms to keep pace with technological frontiers and market demand and to deepen the integration of advanced technologies such as AI with manufacturing, particularly in clean energy equipment.