Beijing Boosts Power Infrastructure Spending to $92 Billion Amid Renewables Expansion
Beijing: China’s power grid investment reached an unprecedented level last year, reflecting the government’s strategic efforts to strengthen the national electricity system and address transmission challenges.
The China Electricity Council reported that grid investment rose by 639.5 billion yuan (approximately $92 billion), marking a 5% increase in 2025. Analysts say the spending is not merely cyclical but a deliberate response to rising electricity demand, rapid growth in renewable energy capacity, and increased consumption from emerging technologies such as artificial intelligence (AI) data centers.
In contrast, investment in new power generation capacity has lagged due to a slowdown in solar deployment, according to official 11-month data.
State-owned utilities, State Grid Corp. of China and China Southern Power Grid Co., have driven sustained growth in grid investment, with combined budgets expected to approach 1 trillion yuan this year and continue rising through 2030. This effort is part of Beijing’s plan to connect more than 420 gigawatts of capacity under the West-to-East power delivery initiative and expand smart mini-grids and distribution networks to integrate approximately 900 gigawatts from distributed energy sources.
Currently, China operates 45 ultra-high-voltage (UHV) projects and plans to approve an additional seven to nine initiatives this year to meet surging demand. Analysts note that this expansion has boosted local electrical equipment manufacturers and fueled investor interest in energy stocks, particularly amid AI data center growth.
Last month, Xinhua reported that China’s State Grid intends to allocate about 4 trillion yuan ($574 billion) over the next four years to further enhance the nation’s power grid, highlighting Beijing’s commitment to modernizing infrastructure and supporting long-term economic and technological development.
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