China Unveils $690B Plan for Next-Generation Smart Power Grid
China has released detailed blueprints for a next-generation smart power grid, outlining a sweeping transformation of the world’s largest electricity network. The plan, published by Xinhua News Agency on July 13, envisions a modern, resilient, and intelligent grid designed to support the country’s energy transition and integrate massive amounts of renewable energy, with total investment during the 15th Five-Year Plan period (2026–2030) expected to exceed 5 trillion yuan (approximately US$690 billion).
The “Six Networks” Strategy
The new-type power grid (新型电网) is a cornerstone of China’s broader “Six Networks” infrastructure strategy, formally announced at a Central Political Bureau meeting on April 28, 2026. Alongside water networks, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks, the power grid represents a structural upgrade from China’s traditional infrastructure model of railways, highways, and airports.
According to CCTV News, the initiative is a direct response to President Xi Jinping’s call to “adapt to the needs of energy transition, further build the new energy infrastructure network, promote intelligent transformation of grid infrastructure and smart micro-grid construction, and improve the grid’s capacity to accept, allocate, and regulate clean energy.”
A Historic Investment Surge
Grid investment during the 15th Five-Year Plan period will nearly double compared to the previous five years. State Grid Corporation of China announced on January 15, 2026, that its fixed asset investment will reach 4 trillion yuan, a 40% increase over the 14th Five-Year Plan period, as reported by the National Energy Administration.
Hao Yingjie (郝英杰), Secretary-General of the China Electricity Council, noted that preliminary projections show average annual investment in grid projects over the next five years will reach 1 trillion yuan, far exceeding the 553.6 billion yuan annual average during the 14th Five-Year Plan period. He highlighted the Gansu-Zhejiang UHV DC project as an example: with a total investment exceeding 35 billion yuan, it is expected to drive upstream and downstream industry chain investment of over 80 billion yuan and create more than 24,000 jobs.
From “One-Way Road” to Three-Tier Architecture
The new-type power grid represents a fundamental redesign of China’s electricity system. Traditionally, the grid operated like a “one-way road” — power flowed from generation plants through high-voltage lines to consumers. The new system will shift to a “main grid + distribution grid + micro-grid” (主配微) three-tier collaborative system, enabling bidirectional energy flow and intelligent management.
Wang Peng (王鹏), Executive Director of the National Energy Development Strategy Research Institute, explained that new-type grid construction has shifted from the traditional focus on backbone grids to coordinated development across all three tiers. Distribution grids and micro-grids will become the core content of future development, according to his analysis published in the Economic Information Daily.
Ultra-High Voltage Expansion
A key component of the plan is the expansion of Ultra-High Voltage (UHV) transmission corridors. During the 15th Five-Year Plan period, China will add 15 new UHV DC transmission corridors and 6 DC back-to-back projects, increasing west-to-east power transmission capacity to over 420 GW. The Shaanbei-Anhui ±800 kV UHV DC project — the first UHV DC project completed during this period — was fully commissioned on June 30, 2026, spanning three provinces.
Tan Hongjiang (谭洪江), Deputy Director of the Electric Power Department at the National Energy Administration, confirmed in an authoritative analysis published by CCTV that the NEA is currently studying and formulating the implementation plan for 15th Five-Year Plan new-type power grid construction, aiming to preliminarily establish a new-type power grid by 2030 characterized by strong network foundation, system coordination, regulation capability, and service guarantee.
A Historic Milestone in Power Generation
On June 25, 2026, China announced that its total installed power generation capacity exceeded 4,000 GW — surpassing the combined total of the United States, the European Union, India, Japan, and Russia. Non-fossil energy and renewable energy installed capacity both exceeded 60% of the total, underscoring the rapid greening of China’s power sector.
Economic and Industrial Impact
The grid investment is projected to drive upstream and downstream industrial output exceeding 10 trillion yuan and create over 1 million jobs. The multiplier effect extends across equipment manufacturing, survey and design, construction and installation, and emerging sectors such as virtual power plants, vehicle-to-grid (V2G) services, and integrated energy services.
Fu Guanjun (傅观君), an expert at the State Grid Energy Research Institute, noted that micro-grids and virtual power plants have moved from pilot demonstrations to market-oriented and standardized stages. New business forms such as zero-carbon industrial parks and industrial green micro-grids are rapidly being implemented, creating specialized industry chain segments and value spaces.
Challenges and Outlook
Despite the ambitious plans, several challenges remain. The geographic mismatch between energy resources in the west and consumption centers in the east requires continued long-distance transmission investment. The intermittency of wind and solar power demands massive energy storage capacity — the plan targets 300 GW of new energy storage by 2030. Additionally, rising computing power demand from AI and data centers requires unprecedented grid stability.
The State Council officially issued the 15th Five-Year Plan for New Energy System Construction on June 13, 2026, providing the regulatory framework for these ambitious targets.
What’s Next
By 2030, China aims to preliminarily establish a new-type power grid characterized by safety, reliability, low-carbon operations, resilience, and intelligent flexibility. The transformation of the world’s largest power system — from a unidirectional, fossil-fuel-dependent network to a bidirectional, renewable-powered smart grid — will serve as a potential model for global energy transition. As the Xinhua report concludes, this is not merely an upgrade but a “systematic reconstruction” of China’s energy future.