Analysis of Industry Landscape and Smart Grid Technological Breakthroughs Amid the 4 Trillion Yuan Power Grid Investment

Based on the latest web searches and data analysis, I have prepared a professional analysis report on the 4 trillion yuan power grid investment for you.

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Based on public information, State Grid’s fixed-asset investment is expected to reach

during the 15th Five-Year Plan period, representing a from the 14th Five-Year Plan period, hitting a record high [1][2]. From the perspective of investment rhythm:

Year	Investment Amount (100 million yuan)	YoY Growth Rate
2022	5,012	First time exceeding 500 billion yuan
2023	5,381	+7.4%
2024	6,083	+13.0%
2025	6,500+	First time exceeding 650 billion yuan
2026E	7,500+	Expected to continue growing

State Grid has clarified that this investment will focus on three core directions [1][3]:

1. Energy Green Transition
   : Support an annual newly installed capacity of 20 million kilowatts of wind and solar new energy in the operating area, drive the proportion of non-fossil energy consumption to reach 25%, and the proportion of electricity in terminal energy consumption to reach 35%

2. Improvement of Interregional Power Transmission Capacity
   : Interregional and inter-provincial power transmission capacity will increase by
   more than 30%
   compared to the end of the 14th Five-Year Plan period, supporting the development and external transmission of clean energy bases such as “Desert, Gobi, and Barren Land” and large-scale hydropower in Southwest China

3. Construction of a New Power Grid Platform
   : Initially build a new power grid platform with coordinated backbone grids, distribution grids, and smart microgrids

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: As the core carrier of interregional power transmission, UHV is the of this investment. By the end of 2025, State Grid has completed a total of 42 UHV projects (20 DC, 22 AC), with interregional power transmission capacity reaching 37 GW [1][2].

:

• Newly approved in 2025: 2 DC and 3 AC projects (tendering for two UHV DC projects, Mengxi-Beijing-Tianjin-Hebei and Southeast Tibet-Greater Bay Area, has started)
• Expected to be approved and start construction in 2026: 4-5 DC projects (Shaanxi-Henan, Badain Jilin-Sichuan, Southern Xinjiang-Sichuan-Chongqing, etc.)

:

Company	Ticker	Core Advantages	Market Share/Orders
NARI Technology	600406	UHV DC control and protection	Over 74%
TBEA	600089	Global leader in UHV transformers	Over 40%
XD Electric	601179	China’s only full-chain supplier of AC/DC equipment	Participated in over 80% of UHV projects
XJ Electric	000400	UHV converter valves	Over 37%
Pinggao Electric	600312	UHV GIS switches	44%

: As the “capillaries” of the power grid, distribution grids are a key area for investment deployment. The National Energy Administration has issued the Action Plan for High-Quality Development of Distribution Grids (2024–2027) [1]. With 35 million charging facilities connected, enterprises with “observable, measurable, adjustable, and controllable” capabilities will experience explosive growth.

:

• Distributed smart grids
• Rural microgrid construction
• Supporting transformation of charging piles
• Rural power grid upgrading

:

• Dongfang Electronics (000682): Leader in distribution grid automation, with photovoltaic absorption rate increased to 99.2%
• Sifang Electric (601126): Distribution grid self-healing control technology, improving fault handling efficiency by 8 times
• Accuenergy (002339): Core supplier of distribution automation terminals

: Energy storage is key to new energy absorption. Installed capacity of pumped storage and new energy storage will maintain high prosperity. Data from the IEA shows that global electricity demand is expected to grow by over 40% by 2035, with renewable energy generation accounting for nearly 55% [1].

:

• Pumped storage
• Salt cavern compressed air energy storage
• New electrochemical energy storage
• Solid-state transformer (SST)

:

• CATL (300750): Leading energy storage battery technology, accelerating mass production of sodium-ion batteries
• CSG Energy Storage (600995): Pumped storage installed capacity exceeds 10 GW
• Kelud Electronics (002121): Full industrial chain layout for energy storage, with energy storage orders exceeding 10 billion yuan in 2025
• Jiangxi Salt Industry Group (601065): Salt cavern compressed air energy storage project, with an investment of 3 billion yuan

: The “Artificial Intelligence +” special action promotes the digital transformation of power grids, making areas such as intelligent dispatching and virtual power plants new investment hotspots [2][4].

:

• Guangming Power Large Model deeply empowers power grid operation
• Large-scale application of vehicle-grid interaction (new energy vehicles participating in peak shaving and valley filling)
• Smart microgrids and virtual power plants
• Digital twin technology

:

• SGCC Information & Communication (600131): Main entity for power grid information platform construction and operation
• Guoneng Rixin (301162): Leader in new energy power generation forecasting, with virtual power plant aggregation platform covering over 20 provinces
• Longshine Technology (300682): Core service provider for electricity information collection and virtual power plants
• Yijiahe Technology (603666): Market share of power inspection robots exceeds 60%

: The upcoming replacement cycle of smart meters and the intelligent upgrading of power grid operation and maintenance drive continuous growth in demand for terminal equipment and services [1].

:

• Juhua Technology (300360): Top 3 domestic market share in smart meters
• Samxing Medical (601567): Implementation of new standard meters in Q1 2026 will bring a performance inflection point
• Siyuan Electric (002028): Leader in distribution grid switches and reactive power compensation equipment, with overseas orders surging 88.9%

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:

• ±800kV/8GW Commutated Line-Commutated Converter (CLCC)
  : Passed all test verifications in June 2025, solving the “commutation failure” problem that has plagued the EHV/UHV DC transmission field for more than half a century [4]

• ±800kV/8GW UHV Flexible DC Technology
  : Released in 2025, driving 23 sets of equipment to be included in the 5th batch of first-of-its-kind major technical equipment list by the National Energy Administration

• Distributed Cascade Technology
  : The Jinshang-Hubei Project is the world’s first UHV DC project to successfully apply distributed cascade technology in high-altitude areas

Technical Direction	Breakthrough Achievements	Application Scenarios
Guangming Power Large Model	“Outstanding AI Leader Award” at the World Artificial Intelligence Conference	Power grid operation, new energy absorption, power supply services
Digital Twin	Twin experiment platform for large power grid operation control	Power grid dispatching and fault diagnosis
Intelligent Inspection	AI algorithms enable extreme weather fault early warning	UHV substation operation and maintenance
Virtual Power Plant	Regulation capacity reaches GW level	Mandatory energy storage and power grid collaboration

• Large-scale application of self-developed high-voltage IGBTs
  : NARI Technology promotes large-scale application of self-developed high-voltage IGBTs
• IGCT-based hybrid commutated converters
  : Development of hybrid commutated converters based on IGCT
• Special equipment for high-altitude areas
  : First application of fast circuit breakers meeting extreme environment requirements

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The 4 trillion yuan power grid investment will form a

, directly driving the following fields:

Upstream: Raw materials (copper, aluminum, steel, insulating materials)
    ↓
Midstream: Power generation equipment, power transmission and transformation equipment, distribution equipment, energy storage equipment
    ↓
Downstream: Power grid operation, terminal applications (charging piles, data centers, industrial and commercial users)

Segmented Field	Incremental Space	Core Driving Factors
UHV	4-5 new projects started annually	Rigid demand for new energy absorption
Distribution Grid Intelligence	Growth rate over 28%	Connection of 35 million charging facilities
Energy Storage	50GW installed capacity target	New energy supporting requirements
Digitalization	Growth rate 32%	AI-enabled power grid transformation
Smart Meters	New standard implementation	Stock replacement demand

Grid upgrading in Europe and strong demand for new energy infrastructure in Southeast Asia provide a

for Chinese enterprises [1][2]:

• XD Electric: Overseas revenue growth rate exceeds 60%, won the bid for Saudi Arabia’s NEOM New City project
• TBEA: 16.4 billion yuan order from Saudi Arabia sets a record for overseas expansion
• Orient Cable: European offshore wind power orders account for over 50%, with overseas revenue expected to account for 40% in 2025
• Jinpan Technology: Overseas orders reached 2.85 billion yuan in 2025 (+180%)

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Certainty	High-Certainty Leaders	High-Elasticity Growth Targets
UHV	NARI Technology, TBEA, XD Electric	XJ Electric, Pinggao Electric
Distribution Grid Intelligence	Dongfang Electronics, Sifang Electric	Accuenergy, Siyuan Electric
Energy Storage	CATL, CSG Energy Storage	Kelud Electronics, Jiangxi Salt Industry Group
Digitalization	SGCC Information & Communication, Longshine Technology	Yijiahe Technology, Guoneng Rixin

1. Policy Implementation Rhythm
   : Investment plans may be affected by macroeconomic and policy adjustments
2. Technological Iteration Risk
   : New technological routes may affect demand for traditional equipment
3. Raw Material Price Fluctuations
   : Prices of raw materials such as copper and aluminum affect equipment gross profit margins
4. Competitive Landscape Changes
   : New entrants may alter the market structure

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The 4 trillion yuan power grid investment is an “epic” dividend in the energy infrastructure sector, which will profoundly reshape the following industry landscapes:

1. UHV
   : Interregional power transmission capacity increased by more than 30%, forming a new pattern of “west-to-east power transmission and north-to-south power supply”
2. Distribution Grid Intelligence
   : Supports the connection of 35 million charging facilities, activating distributed new energy absorption
3. Energy Storage Industry
   : 50GW installed capacity target opens up the rigid demand market for long-duration energy storage
4. Digital Transformation
   : AI empowerment makes power grids smarter, more efficient, and more reliable
5. Localization of High-End Equipment
   : Technologies such as CLCC and flexible DC achieve independent and controllable capabilities

The core breakthroughs in smart grid technology lie in three directions:

, , and . These technological breakthroughs will push the construction of China’s new power system to a new level.

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[1] 21st Century Business Herald - SGCC’s 4 Trillion Yuan Leads the Era of Large-Scale Power Grid Investment, Five Sectors Face Certain Opportunities (https://www.21jingji.com/article/20260116/herald/5ee56869ef2fe53ff32df46b72eab32b.html)
[2] Sina Finance - State Grid Releases Record 4 Trillion Yuan Investment Plan (https://finance.sina.com.cn/roll/2026-01-16/doc-inhhncwz2674898.shtml)
[3] Caifuhao - Analysis of Beneficiaries in the Industrial Chain of State Grid’s 4 Trillion Yuan New Power Facility Investment (https://caifuhao.eastmoney.com/news/20260115230356540317210)
[4] State Grid News - State Grid Strengthens Scientific and Technological Innovation to Accelerate Forging National Strategic Scientific and Technological Strength in the Energy Sector (https://www.cpnn.com.cn/news/hy/202601/t20260113_1859524.html)
[5] Sina Finance - SGCC’s Investment Increased to 4 Trillion Yuan During the 15th Five-Year Plan Period (https://finance.sina.com.cn/roll/2026-01-16/doc-inhhmnzi2995795.shtml)

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