Energy structure is a complicated system concerning economic development, natural resources, technological innovation, ecological balance, social progress and many other elements. It is not easy to explain clearly the developmental mechanism of an energy system and the mutual relations between the energy system and its related environments by the traditional methods. It is necessary to develop a suitable dynamic model, which can reflect the dynamic characteristics and the mutual relations of the energy system and its related environments. In this paper, the historical development of China's energy structure was analyzed. A new quantitative analysis model was developed based on system dynamics principles through analysis of energy resources, and the production and consumption of energy in China and comparison with the world. Finally, this model was used to predict China's future energy structures under different conditions.