China State Grid plans record US$89 billion spend amid green surge

STATE Grid Corp of China, the nation’s largest power network operator, plans to raise investments to a record as it seeks to keep pace with surging renewable generation. 

The grid operator for roughly 80 per cent of the nation will spend more than US$89 billion this year, according to a report from state-run CCTV. The firm last year said it planned to spend about 600 billion yuan (S$111.8 billion) on capital expenses. 

China – which is still heavily reliant on coal power plants – is adding wind and solar farms at an unprecedented rate to meet climate pledges and reduce the need for expensive fuel imports. All the new intermittent generation has strained the grids, and more power lines and energy-storage equipment is needed to deliver electricity where it needs to go around the clock. 

Long-distance, ultra-high-voltage (UHV) power lines, as well as smaller networks linking rooftop solar panels, will be the biggest beneficiaries of increased grid spending in China, analysts at China International Capital Corp said in a research note last month. State Grid completed three new UHV lines last year, putting its total at 38, CCTV reported.

Increased spending on power infrastructure could also help boost demand for materials including copper and steel. BLOOMBERG