Analysis of Changes Brought by Power Grid Investment to Distributed Energy Access

On January 15, 2026, State Grid Corporation of China released a heavyweight plan, announcing that fixed-asset investment during the 15th Five-Year Plan period (2026-2030) is expected to reach

, hitting a record high[1]. This figure represents a 40% increase compared to the 14th Five-Year Plan investment, the highest growth rate in recent years.

In recent years, State Grid’s investment has repeatedly hit new highs:

• 2023
  : Completed 538.1 billion yuan in grid investment throughout the year
• 2024
  : Rose to 609.2 billion yuan, exceeding the 600 billion yuan mark for the first time
• 2025
  : Fixed-asset investment exceeded 650 billion yuan for the first time, hitting a new record high

This sharp expansion of investment scale reflects the national strategic resolve for energy infrastructure construction, and more importantly, marks that China’s power system is accelerating towards a new stage of green, intelligent, safe, and efficient development[2].

On December 31, 2025, the National Development and Reform Commission and the National Energy Administration jointly issued the Guiding Opinions on Promoting High-Quality Development of Power Grids, clarifying the core goals for power grid development:

Development Indicators	2030 Target
West-East Power Transmission Scale	Over 420 million kW
New Inter-provincial Power Mutual Support Capacity	Approximately 40 million kW
Share of New Energy Power Generation Supported	Around 30%
Capacity to Accommodate Distributed New Energy	900 million kW
Charging Infrastructure Supported	Over 40 million units

This policy framework clarifies the strategic positioning of the power grid as a core link in the new power system, providing institutional guarantees for the large-scale access of distributed energy[3].

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The traditional power grid structure is mainly one-way radial, with multiple bottlenecks for distributed energy access such as insufficient absorption capacity, inconsistent technical standards, and poor scheduling flexibility. With the implementation of the 4 trillion yuan investment during the 15th Five-Year Plan period, the grid’s capacity to accommodate distributed energy will achieve

:

: By 2030, the grid’s capacity to accommodate distributed new energy will reach , achieving a leapfrog growth from the current level[1]. The achievement of this goal will rely on the following investment priorities:

1. Intelligent Transformation of Distribution Grids
   : Transform distribution grids from traditional passive one-way radial networks to active two-way interactive systems
2. Large-Scale Development of New Energy Storage
   : Support the development of distributed independent energy storage and grid-substitutable energy storage
3. Accelerated Construction of Microgrids
   : Explore end-user supply guarantee and off-grid microgrid models

State Grid clearly proposed the

strategy for the first time, a change that marks a profound adjustment of the power grid structure:

Power Grid Level	Functional Positioning	Change in Investment Proportion (14th Five-Year Plan → 15th Five-Year Plan)
Main Grid	Lay a solid foundation for power security, support wide-area allocation of clean energy resources	40%→35%
Distribution Grid	Carry open access and two-way interaction of diversified energy sources and loads, support the development of distributed new energy	30%→32%
Intelligent Microgrid	Promote local development and consumption of new energy, improve power supply reliability in remote areas	10%→15%

Through unified planning and coordinated operation, the three levels will improve coordinated operation efficiency with digital and intelligent technologies, jointly forming a new power grid platform[3].

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To support the construction of the new power grid platform, the national level has deployed key technological research tasks. According to the Guiding Opinions on Promoting High-Quality Development of Power Grids, relying on national major science and technology projects such as the Smart Grid Major Special Project, the following advanced technologies will be promoted for R&D and application[3]:

:

1. Key Technologies for Stability Analysis and Control of New Power Systems
2. Coordinated Planning and Operation Scheduling Technologies for Main Grids, Distribution Grids, and Microgrids
3. High-Capacity Flexible DC Transmission, New Energy Island Transmission, and Low-Frequency Transmission Technologies
4. Engineering Verification and Promotion of Grid-Forming Technologies

State Grid plans to implement the

special action, strengthen digital empowerment of the power grid, and promote the application of the following technologies:

• Intelligent Sensing Technology
  : Achieve “observable, measurable, adjustable, and controllable” distributed energy
• Big Data Analysis
  : Optimize new energy power generation forecasting and scheduling decisions
• Edge Computing
  : Improve the response speed of distribution grid terminals
• Digital Twin
  : Build full-life-cycle intelligent management capabilities for the power grid

The instability of new energy requires energy storage system regulation. During the 15th Five-Year Plan period, State Grid will:

• Improve system regulation capabilities
• Optimize the layout of pumped storage stations
• Support large-scale development of new energy storage
• Enhance new energy operation support and grid-connection consumption levels

According to a research report by Clou Electronics, the global new installed capacity of large-scale energy storage will reach 262/362/459/557 GWh from 2025 to 2028, with a year-on-year growth of 65%/38%/27%/21%[4].

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The pulling effect of power grid investment on the industrial chain has already emerged. Since 2019, multiple companies have frequently won bids for State Grid projects, and orders and performance of industrial chain-related enterprises have continued to grow[5].

:

Industrial Chain Segment	Representative Enterprises	2025 First Three Quarters Performance Highlights
Ultra-High Voltage Equipment	NARI Technology, TBEA, XD Electric, XJ Electric	TBEA’s net profit attributable to parent company increased by 28% year-on-year, XD Electric by 20%, and Baobian Electric by 73%
Distribution Network Equipment	Dongfang Electronics, Sifang Electric, Beijing Kerui, Changgao Electric	Beijing Kerui’s net profit attributable to parent company increased by over 14 times year-on-year
Smart Electricity Meters	Juhua Technology, Samsung Medical, Clou Electronics	Benefiting from the implementation of new standard electricity meters, volume and price are expected to rise in 2026
Energy Storage Systems	Sungrow Power, Clou Electronics, CATL	Clou Electronics’ energy storage orders exceeded 10 billion yuan

:

• As the main framework of the new power system, the approval pace of ultra-high voltage projects is expected to accelerate significantly
• Core equipment suppliers directly benefit from project implementation and order volume growth
• It is expected that 4-5 DC projects will be approved and started in 2026

:

• With the access of distributed new energy and 35 million charging facilities, distribution network transformation has become a rigid demand
• Enterprises with “observable, measurable, adjustable, and controllable” capabilities will experience explosive growth
• The National Energy Administration issued the Action Plan for High-Quality Development of Distribution Grids (2024—2027)

:

• Strive to build about 100 national-level zero-carbon parks during the 15th Five-Year Plan period
• Intelligent microgrids will play a core role in zero-carbon park construction
• More than 300 industrial green microgrid projects have been put into operation nationwide[2]

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The transformation of distributed energy access driven by power grid investment follows a clear evolution path:

: Traditional one-way power supply grid model, with restricted distributed energy access
: Smart distribution grids achieve two-way interaction, with significantly improved access capacity
: Coordinated operation of main grids, distribution grids, and microgrids with multi-source complementarity, accommodation capacity reaches 900 million kW
: New power grid platform with integrated source-grid-load-storage, achieving full coordination

According to an analysis by JiuFang Financial Research Institute, power grid construction in 2026 will present the following characteristics[5]:

1. Large-Scale Ultra-High Voltage Construction
   : It is expected to start 4-5 DC projects, including Shaanxi-Henan, Badain Jaran-Sichuan, Southern Xinjiang-Sichuan-Chongqing, Hobq-Shanghai, and Qinghai-Guangxi
2. Accelerated Distribution Network Investment
   : Intelligent transformation progresses, driving continuous demand release for primary and secondary distribution network equipment
3. Volume and Price Growth in the Electricity Meter Industry
   : New standard electricity meters were implemented in August 2025, driving industry valuation recovery
4. Deepened Power Trading
   : Spot market construction spurs demand for trading system construction and professional services

:

• Annual new installed capacity of wind and solar new energy in the service operation area reaches 20 million kW
• Drive the share of non-fossil energy consumption to reach 25%
• The proportion of electricity in terminal energy consumption reaches 35%

:

• Power grid projects feature large investment scale, long industrial chains, and strong radiation-driven capabilities
• Effectively drive social investment and the development of industrial chains and supply chains
• Promote high-quality development of the entire industrial chain of the new power system

:

• Improve urban and rural power service guarantee capabilities
• Support high-quality charging infrastructure construction
• Promote integrated development of vehicles, charging piles, and the power grid

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Combining policy orientation and industrial development trends, it is recommended to focus on the following investment directions:

1. Ultra-High Voltage Equipment Leaders
   : NARI Technology (with a market share of over 74% in UHVDC control and protection), TBEA (global leader in UHV transformers with a market share of over 40%), XD Electric (the only domestic supplier with a full chain of AC and DC equipment)
2. Leaders in Intelligent Distribution Networks
   : Dongfang Electronics (leader in distribution network automation, which increased photovoltaic absorption rate to 99.2% in the Qingdao Huangdao District project), Sifang Electric (participated in the Shaoxing DC distribution network pilot)
3. Energy Storage System Integrators
   : Clou Electronics (full industrial chain layout for energy storage, with energy storage orders exceeding 10 billion yuan in 2025), Sungrow Power (global leader in photovoltaic inverters)
4. Intelligent Microgrid Solution Providers
   : Focus on enterprises with core technologies and project experience in zero-carbon park construction

Although the 4 trillion yuan investment brings clear development opportunities for related industries, investors still need to pay attention to the following risks:

1. Investment Pace Risk
   : State Grid clearly stated that it will control construction costs, optimize operating costs, improve investment quality and efficiency, focus on core responsibilities and businesses, and use funds more precisely
2. Technological Iteration Risk
   : Power grid technologies update rapidly, requiring continuous R&D investment to maintain competitiveness
3. Policy Change Risk
   : The progress of power system reform and adjustments to electricity price policies may affect corporate profit models
4. Market Competition Risk
   : The power grid equipment industry is highly competitive, with continuous price pressure

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The changes brought by power grid investment to distributed energy access are

:

1. Scale Change
   : The 4 trillion yuan investment hits a record high, representing a 40% increase compared to the 14th Five-Year Plan, boosting the capacity to accommodate distributed new energy from the current level to 900 million kW

2. Structural Change
   : Transformation from a traditional one-way power supply model to a new power grid platform with coordinated operation of main grids, distribution grids, and microgrids, enabling open access and two-way interaction of diversified energy sources and loads

3. Technological Change
   : Breakthroughs in key technologies such as flexible DC transmission, energy storage technology, and intelligent scheduling significantly improve the intelligence and digitalization level of the power grid

4. Industrial Change
   : Upstream and downstream enterprises in the industrial chain are facing historic development opportunities, and leading players in segmented tracks such as ultra-high voltage, distribution network equipment, energy storage, and microgrids are expected to fully benefit

With the in-depth advancement of power grid investment during the 15th Five-Year Plan period, the construction of China’s new power system will enter a fast lane, and distributed energy access will usher in a golden development period, laying a solid energy infrastructure foundation for achieving the “Double Carbon” goals.

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[1] Jiemian News - “Energy Revolution Behind 4 Trillion Yuan: State Grid Ramping Up Power Grid Investment in the 15th Five-Year Plan” (https://www.jiemian.com/article/11590859.html)

[2] Eastmoney - “4 Trillion Yuan! State Grid’s 15th Five-Year Plan Investment Plan Released, Which Enterprises Are Expected to Benefit?” (https://www.gudongtech.com/depth/2906412601530372)

[3] Baidu Baike - “New Power Grid Platform” (http://baike.baidu.com/item/新型电网平台/67155281)

[4] Orient Securities Research Report - “In-Depth Research Report on Clou Electronics (002121.SZ)” (https://pdf.dfcfw.com/pdf/H3_AP202601091816873867_1.pdf)

[5] Yicai - “State Grid Releases Record 4 Trillion Yuan Investment Plan, Key Directions Clarified” (https://m.yicai.com/news/103007253.html)

[6] JiuFang Financial Research Institute - “Special Analysis Report on Power Grid Investment” (https://eraes.com.cn/newsinfo/8933630.html)

[7] Sina Finance - “Guiding Opinions on Promoting High-Quality Development of Power Grids” (https://finance.sina.com.cn/jjxw/2025-12-31/doc-inhesnwq3758027.shtml)