[1] The eddy energy sources and sinks in the South China Sea (SCS) are studied based on a high-resolution ocean circulation model. Eddies are found to acquire their energy from barotropic instability (BT), the release of available potential energy (APE) associated with baroclinic instability (BC) and horizontal convergence from surrounding areas, while they lose energy due to turbulent processes. Both the eddy energy sources and sinks show western intensification with their maximum around the southwestern SCS where most of the wind-input energy occurs, and the Luzon Strait where the Kuroshio intrudes the SCS in winter. Unlike that in the open ocean, the eddy energy in the inner SCS is confined to the upper layer. Besides, the eddy energy indicates clear seasonal variability, especially at the Luzon Strait where the eddy activity is much stronger in winter than in summer. Energy budget analysis suggests that APE releasing is found to be the most important eddy energy source, accounting for over 60% of the total, followed by energy convergence from surrounding areas in horizontal direction (around 20%) and energy released from BT (around 15%). Most of the generated energy is mainly balanced by the turbulent processes, while both of the downward energy flux and tendency term are negligible.