We have all heard about petrostates, but have you heard of electrostates? And that China might be the first electrostate?

It's clear that China is leading the world’s energy transformation, becoming the first major “electrostate.” Unlike traditional petrostates that rely on coal, oil, and gas, China is rapidly shifting to clean energy sources like solar, wind, and hydro. In early 2025, renewables made up 89% of new power capacity, with solar alone growing by 105 GW—more than eight times the growth of coal power. This shift is already cutting China’s emissions, a rare bright spot among industrial nations.

But don't think of it as a transformation of the sources of energy, though that's also under way. Instead think of it as a transformation of the organization of energy into networked hubs and flows rather than disconnected islands.

In this emerging "Energy Flow System," China is electrifying its entire economy. Electric cars, buses, and trucks are booming, and the country’s high-speed rail network is now the largest in the world, making train travel more popular than flights between major cities like Beijing and Shanghai.

However, rising temperatures and droughts are pushing electricity demand higher, especially for air conditioning. China is meeting this challenge with massive battery storage and expanding renewables, preparing for a hotter future.

Will this help meet China's decarbonization goals or help power more ACs in Shanghai as the summers become hotter? Likely. Is that a good thing? Maybe. Good or bad, it's a transformation in the organization of energy just as computing was a transformation in the organization of information.