This paper shows that, in several jurisdictions around the world, electricity utilities employ end-use energy efficiency as a resource in meeting their customers’ needs for energy services. Energy efficiency is seen as a cost-effective alternative to investing in supply-side resources, such as building power plants and expanding the electricity grid. The paper outlines the multiple benefits from using energy efficiency as a power system resource and emphasises that this is particularly important in China, where energy efficiency could contribute to reducing air pollution. The paper concludes by urging Chinese governments to take action to reduce barriers that prevent Chinese grid companies from using energy efficiency as a power system resource, and to establish the policy and regulatory mechanisms required to enable energy and capacity savings achieved by Chinese energy efficiency programs to be used in this way.