Abstract: The major issues encountered in the development of China’s energy and power were analyzed, such as unsustainable supply of conventional fossil energy, unreasonable energy transportation structure, prominent ecological environment crisis, and the belated power grid development. The major strategic initiatives and measures to construct safe, stable, economic, clean and modern energy industry system were proposed. The strategies of China’s power industry transformation development is put forward, which include developing clean energy in large-scale, optimizing coal power development, promoting trans-region transmission of clean energy, accelerating the construction of UHV transmission-region transmission and smart grids. In the end, an empirical analysis is performed on the important impact of power transformation development on the safe and sustainable energy supply.