This is the third report released by the China Power Sector Roundtable Project. Based on social and economic prospects, this study analyzes and predicts the electricity demand of key nodes; determines the roles and relationships of different energy types in the power supply system; and proposes a strategy for the sustainable development of the power sector. The major recommendations are improving the development mechanism for renewable energy and promoting the sustainable development of renewables, establishing market mechanisms to promote efficient resource allocation, and continuing reforming the transmission and distribution systems and adjusting the role of grid companies, etc.