BEIJING: China is gearing up for an unprecedented transformation of its national power infrastructure, with the country’s two dominant grid operators unveiling massive, coordinated investment blueprints to build a highly resilient, intelligent and green energy network during the 15th Five-Year Plan period (2026 to 2030).
Driven by the rapid expansion of clean power and the looming surge in advanced computing loads, Beijing is leaning on next-generation energy infrastructure as a macroeconomic ballast.
Combined capital expenditure (capex) from State Grid Corp of China and China Southern Power Grid (CSG) is expected to reach a record of around five trillion yuan over the next five years, aiming to eliminate renewable integration bottlenecks, propel the nation toward its carbon peaking goals and accelerate industrial modernisation.
Industry experts viewed this historic capital injection as a sophisticated macroeconomic lever.
Ye Xiaoning, a senior engineer at the new energy department of the State Grid Energy Research Institute, said the country is pivoting toward advanced energy infrastructure to serve as a new bedrock for the broader economy.
“By significantly increasing capex compared to previous cycles, China is leveraging the utility sector to drive domestic consumption, anchor industrial supply chains and foster new quality productive forces.”
He said such investments offer high multiplier effects across the industrial chain – boosting demand for everything from copper and power semiconductors to high-end software – at a time when traditional economic growth drivers are maturing.
Echoing this sentiment, financial heavyweight Goldman Sachs said in a recent report that this wave of capital represents an evolution from simple infrastructure expansion to a profound structural reshaping.
With wind and solar power projected to account for 30% of China’s total power generation by 2030, its inherent intermittency will inevitably exacerbate grid volatility, structurally necessitating a massive investment shift toward intelligent systems and digitalised grid management.
While ultra-high voltage transmission is expected to be the fastest-growing segment in 2026, grid investment from 2028 to 2030 will pivot sharply toward smart infrastructure.
This implies an unprecedented strengthening of the grid’s “nervous system” – comprising software, control systems and sensors – and its “capillaries”, such as distribution networks and smart microgrids, the report said.
Demonstrating the scale of this ambition, CSG, which serves southern industrial hubs including Guangdong, Yunnan and Hainan provinces, recently released a comprehensive roadmap detailing its new power system strategy for the 15th Five-Year Plan.
The blueprint sets aggressive targets for the end of the decade.
By 2030, nonfossil energy is projected to account for 64% of the southern grid’s total power generation, with new energy capacity making up 50% of the total.
Aiming to outpace national benchmarks, CSG is targeting a 35% share of nonfossil energy in total end-user consumption by 2030 – 10 percentage points above the national goal – while pushing the electrification rate of terminal energy consumption to 38%.
During the 2026 to 2030 period, CSG plans to add 230 million kilowatts (kW) of new energy capacity, bringing its total to 500 million kW by 2030.
To manage this volatile green influx, the operator will simultaneously bring 88 million kW of supporting power and over six million kW of grid-forming equipment.
Furthermore, CSG is accelerating multi-technology storage and flexible load solutions. By 2030, it aims to achieve 60 million kW of novel energy storage and 29.43 million kW of pumped hydro storage.
State Grid, meanwhile, pledged to proactively serve the development of emerging market entities. — China Daily/ANN
