The world is witnessing simultaneous advances in the technological revolution and industrial upgrading, with digital, intelligent and green trends intertwining to reshape the global economy profoundly. In this transformative era, energy has evolved from a mere "power fuel" in the industrial age into a strategic factor in the digital and intelligent era. Those capable of building an efficient, smart and green new energy system will hold the initiative in future development.

Yin Zheng, Executive Vice President of Schneider Electric and President of Schneider Electric China & East Asia, stated: "Energy serves as the master switch for new quality productive forces. To cultivate new industrial momentum, energy transition must take the lead. Energy is not only the cornerstone for industrial operation, but also a growth engine for high-quality development, as well as a new hallmark in global competition."

Core Connotations — The Strategic Bond Between New Quality Productive Forces and Energy Transition

New quality productive forces are defined by high technology, high efficiency and high quality. Driven by the in-depth integration of artificial intelligence, data, computing power and algorithms, they comprehensively reshape the whole chain of social production, distribution, exchange and consumption. As digital and intelligent technologies are widely applied across all walks of life, energy, as the fundamental guarantee for computing power, has risen from a behind-the-scenes support to a core competitive edge.

Energy transition lays a solid smart foundation for industrial development. Guided by the pursuit of high technology, high efficiency and high quality, new quality productive forces rely on a green and efficient new energy system. The explosive growth of AI has also led to a sharp surge in energy demand, making energy a cornerstone of competitiveness in the AI era. As the world’s largest power producer and a global hub for the AI industry, China is leveraging its dual strengths to create unique development advantages.

Furthermore, energy transition acts as a powerful growth engine for new quality productive forces. The energy sector is a strategic foundation of new quality productive forces, and new energy industries constitute a vital part of it. China has built the world’s largest clean power generation system. During the implementation of the 15th Five-Year Plan, non-fossil energy will receive stronger policy support. Industries including photovoltaic power, wind power, energy storage, hydrogen energy and new power systems will embrace accelerated development, forming trillion-yuan industrial clusters and becoming a key pillar and driving force for new quality productive forces.

In addition, energy transition has become a green business card for Chinese enterprises. Green and low-carbon development is an inherent requirement for high-quality development and also a key rule in international competition. As the largest source of carbon emissions, the energy industry’s shift toward green development and low-carbon technologies not only meets the needs of domestic high-quality growth, but also helps Chinese enterprises stand out in global competition.

Underlying Logic — The Imperative of Advancing Energy Transition

Energy transition is a systematic undertaking involving technology, industry and talent, which cannot be achieved merely by policy incentives or isolated breakthroughs. Yin Zheng pointed out: "Large-scale energy transition requires continuous technological innovation, coordinated efforts across the industrial ecosystem and long-term commitment from professional talents. Only by combining these three strengths can we fully tap the potential of energy transition and drive industrial upgrading."

Technological innovation is the core driver of energy transition. A full range of digital and intelligent technologies including smart hardware, software, AI, digital twins and cloud-edge collaboration enhance the energy system’s capabilities in perception, decision-making and dispatching. Cutting-edge energy technologies such as green hydrogen, nuclear power and advanced energy storage help break bottlenecks in the production, storage and application of clean energy. Integrated innovation in energy technologies is essential to build a new power system that features clean and low-carbon output, sufficient and reliable supply, economic efficiency, coordinated supply and demand, as well as flexibility and intelligence.

Ecosystem collaboration fuels faster progress in energy transition. The energy system spans multiple industries, scenarios and stakeholders, so no single enterprise or technology can achieve transformation independently. It is imperative to shift from isolated attempts to collaborative innovation. Typical examples include partnerships between new material enterprises and charging operators to build safe and efficient fast-charging networks, and photovoltaic enterprises providing direct green power supply solutions for computing centers. Through ecosystem collaboration, scattered innovative achievements are integrated into systematic solutions to accelerate energy transition.

Professional talents are the internal driving force for large-scale energy transition. Characterized by wide coverage, rapid technological iteration and strong systematicity, energy transition creates a huge demand for interdisciplinary talents equipped with expertise in electrification, automation, digital intelligence and green development. A talent training system integrating industry, universities, research institutes and end-users is required. Joint efforts from universities, enterprises and social institutions will deliver a steady stream of intellectual support for energy transition and industrial upgrading.

Implementation Approaches — Leading Industrial Transformation with Energy Technology

Against the sweeping tide of energy transition, global leading enterprises with full-spectrum energy technology capabilities have become key players in technology application and industrial collaboration.

As a global pioneer in energy technology, Schneider Electric promotes the deep integration of digital intelligence, automation, electrification and AI technologies. It supports the large-scale production and consumption of new energy and facilitates the development of a resilient and smart new power system. Meanwhile, it empowers digital and intelligent operation across key sectors such as infrastructure, data centers, manufacturing and buildings, driving efficiency gains and carbon reduction throughout the industrial chain.

For instance, the company delivered digital and prefabricated solutions to help Qineng Technology build a super computing center. Its full-lifecycle software and services have set a new benchmark for the integrated operation of computing and power, with the key power system reaching an efficiency rate of 97%. Its AI-powered microgrid solutions helped Shanghai Fulei Library earn the world’s first LEED Zero Carbon certification. The library achieves a photovoltaic self-consumption rate of 88% and a 70% carbon emission reduction. By the end of 2025, Schneider Electric had helped enterprises worldwide reduce and avoid 862 million tons of carbon emissions in total.

As energy transforms from a cost center into a growth engine and a competitive advantage, Yin Zheng noted that Schneider Electric will continue to leverage innovation, expand industrial ecosystems and deepen talent cultivation to advance energy transition and foster new industrial drivers.

First, the company keeps scaling up R&D investment to fuel transformation. Having operated in China for 39 years, Schneider Electric has set up five R&D centers in Beijing, Shanghai, Xi’an, Wuxi and Shenzhen, alongside an AI Innovation Lab, forming a complete R&D system for both software and hardware. It employs over 2,900 R&D professionals in China. Capitalizing on China’s innovation strengths, its R&D outcomes not only serve the local market but also benefit the whole world.

Second, it builds an efficient collaborative ecosystem to accelerate transformation. To adapt to the extensive coverage of energy transition, Schneider Electric joins hands with industrial partners to accelerate the implementation of new technologies and business models. Its annual Win-Win Program provides a platform for digital innovation among small and medium-sized enterprises, incubating numerous advanced AI applications and supporting digital transformation in manufacturing and infrastructure sectors.

Third, it cultivates professional talents to sustain long-term development. Adhering to the philosophy of empowering people with technology, Schneider Electric has established a comprehensive internal talent development and digital training system. Externally, it works with over 150 universities and vocational colleges to build an industry-education integration community. Joint initiatives including innovation labs, customized courses and national engineering competitions help nurture innovative and practical talents for the industry.

Scenarios & Outlook

A robust energy sector underpins stable industrial development, and a strong energy industry powers stronger productive forces. Yin Zheng emphasized: "China is the engine of the global economy and a hub of technological innovation, standing at the forefront of energy transition and industrial upgrading. Beyond serving the Chinese market, Schneider Electric is refining replicable and promotable China-based solutions to share with global partners and contribute to worldwide energy transition."

Summary

Guided by the 2026 Two Sessions and the 15th Five-Year Plan, China prioritizes the development of new quality productive forces and the construction of an energy powerhouse. Amid the global digital and green revolution, energy has become a core strategic resource.

Driven by technological innovation, ecosystem collaboration and talent development, China is forging ahead with the new energy system and new industrial growth drivers. Leading enterprises like Schneider Electric are delivering practical solutions across diverse scenarios, advancing technological breakthroughs, industrial coordination and talent training.

Going forward, deepened energy transition will further unlock the potential of new quality productive forces. China will stay on the path of high-quality development, and its experience and practices will continue to bring valuable insights to global energy transition and industrial cooperation.

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