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Subject

The implications of the Belt and Road Initiative for the energy sector.

Significance

One of the aims of China's Belt and Road Initiative (BRI) is to increase the stability of the country's many neighbours by supporting their economic development, in part by developing their energy sectors. Improving China's own energy security is another.

Impacts

Electricity provision in BRI countries will improve, creating better conditions for industry and extending electrification programmes.

BRI countries will become increasingly indebted to China, some of them unsustainably so.

Chinese investment in power plants may encourage development of regional trading pools, encouraging development of an 'Asian supergrid'.

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