By Nirmal P. Acharya
Recently, some international media have claimed that China has been emerging as the first power empire for several decades.
On September 3 this year, China’s military parade showcased its formidable military strength and issued a declaration about its global combat capabilities. Moreover, China’s industrial level is beyond doubt. It is the only country in the world that possesses all industrial sectors.
At present, China seems to be willing to talk about anything, but when it comes to the energy sector, it seems to be extremely reticent and avoids discussing it. Why is this so? Because there lies a big secret that perhaps all countries are well aware of but no one has dared to expose. In July this year, the Financial Times of the UK published an article in which China was referred to as the first power empire in human history. Because they were astonished to discover that China had set a new world record – its monthly electricity consumption exceeded 1 trillion kilowatt-hours. Put simply, China’s current monthly electricity consumption is already equivalent to the total annual electricity consumption of all the countries in the Association of Southeast Asian Nations (ASEAN).
In 2024, China’s newly added power generation capacity reached 430 million kilowatts, with a year-on-year increase of over 20% compared to 2023. This figure is 1.8 times the total installed capacity of Germany and 3.6 times that of Japan. Put simply, the newly added power generation capacity in China alone each year is sufficient to meet the annual energy demands of a moderately developed country.
At this point, someone will surely ask, why does China build so many power stations and generate so much electricity? Can it really be used up? Well, not only can it be used up, but it is still not enough because China is going to undertake a major task next, which is to replace the dominance of the oil-dollar system with an electricity-RMB system and establish an unprecedented global unified market.
The so-called “petro-dollar system” is something everyone is familiar with. To put it simply, it is a closed-loop system of exploitation. Oil-producing countries sell oil and receive dollars, which they then use to purchase US bonds. Meanwhile, countries that need to import oil must strive to earn dollars in order to exchange them for resources. The United States, on the other hand, can rely on printing money to reap the benefits, globally harvesting wealth.
Over the past few decades, many countries and organizations have challenged this system, but the end result was always a failure. So the question arises: Is this system truly impregnable? Of course not. Beneath its tough exterior, there are undeniable weaknesses, and that is cost. For instance, in today’s global trading system, energy costs permeate every link of the industrial chain. And traditional energy sources like oil are not only expensive but also extremely inefficient. A barrel of oil extracted from the Middle East and transported to Europe accounts for 12% of the total price of the crude oil. Even a single round-trip transportation takes more than several days. These explicit and implicit costs ultimately all end up being passed on to the final products.
In addition， stability is also a major hidden danger beneath the oil system. A geopolitical conflict can cause oil prices to fluctuate like a roller coaster. The oil crisis in the 1970s caused global oil prices to skyrocket by several times in a short period of time， and countless countries that relied on imports saw their economies collapse overnight. Even today， every ripple in the world situation directly affects global oil prices, triggering a series of unpredictable chain reactions.
What’s even more dangerous is that the oil trade is always tied to political leverage. The United States often uses oil embargoes as a means to force other countries to take sides. This model of relying on luck and the whims of major powers essentially hands the lifeblood of the global economy over to uncertainty.
In contrast, China’s new energy system has brought a new solution to the world that is extremely cost-effective and highly stable. According to data from 2024, the cost of Chinese photovoltaic power per kilowatt-hour has dropped to 3.5 yuan, which is more than half cheaper than the cost of generating electricity using traditional energy sources in the international market. Even a 1% reduction in energy savings means huge profits, which is extremely attractive for any economy.
And in terms of stability, no country in the world can match China. Looking at the current world, except for East Asia and Southeast Asia, almost all regions are either at war or engaged in internal strife. And China’s demonstrated strong power indicates that wherever China is present, chaos cannot take hold.
Compared to being fearful under the hegemony of oil dollars, cooperating with China not only allows access to cheaper energy but also receives support and assistance in the industrial sector, and most importantly, there is greater security. All countries in the world should be well aware of this.
In fact, many countries have also taken action. For instance, the Zanataz Wind Farm in Kazakhstan, the Hu Yui Photovoltaic Power Station in Argentina, the Osai Hydropower Plant in Cambodia, and many other countries. The construction of new energy sources in dozens of countries all have the shadow of China behind them. Even countries like Laos, Saudi Arabia, and Uzbekistan have begun to use the RMB for energy settlements.
Obviously, a new order centered around new energy is changing the world’s landscape.
Historical experience tells us that the collapse of hegemony has always had only one reason – it was abandoned because it lost its way. Similarly, the establishment of a new order is not achieved through coercion, but rather because it gains support by being in the right way.
Obviously, Nepal must also become an electricity-powered country. Formulating and promptly implementing an electricity energy strategy has become an urgent matter for Nepal. Otherwise, the country’s future will become increasingly bleak.
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