As 2026 marks the first year of China's 15th Five-Year Plan (2026–2030), State Grid Corporation of China (SGCC) has launched an ambitious investment program to accelerate power infrastructure development. During the first quarter, State Grid completed more than RMB 129 billion in fixed-asset investment, representing a 37% year-on-year increase, while driving over RMB 250 billion in additional investment across the upstream and downstream industrial supply chain.
The investment is primarily focused on three strategic areas: Ultra-High Voltage (UHV) transmission projects, interregional power transmission corridors, and pumped-storage hydropower stations.
On March 30, construction officially commenced on the Panxi UHV AC Transmission Project, the first UHV AC transmission project launched by State Grid during the 15th Five-Year Plan period. With a total investment of approximately RMB 23.2 billion, the project is scheduled to be completed and put into operation in 2028.
Once commissioned, the project is expected to transmit up to 18.2 billion kWh of electricity annually, equivalent to replacing approximately 5.88 million tons of standard coal and reducing carbon dioxide emissions by around 14.46 million tons per year.
Significant Investment in Distribution Networks
In the distribution network sector, State Grid invested RMB 56.8 billion during the first quarter, accounting for 55% of total grid investment across all voltage levels.
Investment in renewable energy grid-connection projects exceeded RMB 10 billion, representing a year-on-year increase of more than 50%. These projects are designed to support the rapid integration of renewable energy resources and accelerate China's transition toward a greener and lower-carbon energy system.
RMB 4 Trillion Investment Planned During the 15th Five-Year Plan
According to State Grid's development roadmap, total fixed-asset investment during the 15th Five-Year Plan period is expected to reach approximately RMB 4 trillion, representing a 40% increase compared with the 14th Five-Year Plan (2021–2025).
The average annual investment is projected to reach around RMB 800 billion, setting a new historical record for China's power grid sector.
These investments will focus on several key objectives:
Building a new-generation power system capable of supporting large-scale renewable energy integration.
Accelerating technological innovation and digital transformation within the power industry.
Expanding the capacity of cross-regional and cross-provincial electricity transmission networks.
Strengthening grid resilience, reliability, and operational flexibility.
By the end of the 15th Five-Year Plan period, China's cross-regional and cross-provincial power transmission capacity is expected to increase by more than 30% compared with the end of the 14th Five-Year Plan, providing a stronger foundation for the country's energy security, economic development, and carbon reduction goals.
The scale of investment highlights China's commitment to modernizing its power infrastructure and building a cleaner, more intelligent, and more interconnected energy system for the future.
