(Yicai) Jan. 16 -- State Grid said the Chinese state-owned power producer plans to raise its fixed-assets investment to a record high of CNY4 trillion (USD574 billion) over the course of the country’s 15th Five-Year Plan through 2030.

The plan marks a 40 percent increase from the 14th Five-Year Plan period, State Grid said yesterday. The Beijing-based company’s fixed-asset investment likely surpassed CNY650 billion (USD93.3 billion) last year, also setting a new record.

State Grid's fixed-asset investment has exceeded CNY500 billion (USD71.7 billion) each year since reaching that level in 2022, setting new records year after year.

The substantial increase for the next five years addresses the issues of insufficient capacity to absorb renewable energy and transmit power across regions during the country’s energy transition, according to the company.

China’s energy resources and load centers are unevenly distributed, with power having long been transmitted from west to east and north to south. But wind and solar power curtailment rates in Xizang Autonomous Region as well as Gansu and Qinghai provinces exceeded 10 percent in the first 11 months of last year, underscoring the mismatch between rapid renewable capacity growth and grid absorption capacity.

To address this, State Grid plans to accelerate construction of ultra-high-voltage direct-current transmission corridors, the company said, adding that it aims to increase cross-regional and cross-provincial transmission capacity by more than 30 percent from the end of last year through 2030, to support the development and transmission of new energy from deserts and wastelands and hydropower bases in Southwest China.

Furthermore, State Grid will speed the construction of distribution networks in urban, rural, and remote areas, and explore end-user-focused and off-grid microgrid models, strengthen digital-intelligent infrastructure, and implement an “Artificial Intelligence +” initiative to enhance the energy grid’s digital capabilities.

The new investment plan aligns with the one issued by the National Development and Reform Commission last month, according to which, the scale of "power transmission from west to east" will exceed 420 million kilowatts by 2030, and the capacity to accommodate distributed new energy will reach 900 million kW.

The grid should fully leverage its foundational support and investment roles to drive broader social investment and industry chain development, Xinhua News Agency reported Zhang Zhigang, chairman of State Grid, as saying.

The impact of this large investment on the industry chain is already visible. State Grid’s transformer and transmission equipment tendering in 2025 reached CNY91.9 billion (USD13.2 billion) last year, up an annual 25 percent, according to statistics from Galaxy Securities. 

The approval pace for ultra-high voltage and investment in distribution networks will likely quicken, noted financial research institute JF Smart Invest. The interconnection of distribution transformer districts, the expansion of transformers, and the intelligent transformation of the system will become key layout points.

Editor: Martin Kadiev