China is set to make major changes in its energy sector. The country plans to increase investments by 25% by 2027 compared to 2023 levels. This push is outlined in a new document from the National Development and Reform Commission and the National Energy Administration.
The plan focuses on seven key areas: thermal power, electricity transmission and distribution, wind power, and photovoltaics. It aims to improve energy efficiency and foster technological advancements in these sectors. Wang Weiquan from the China Energy Research Society highlighted that this shift is from “quantity” to “quality” development.
Part of the plan involves recycling outdated equipment. This will boost resource efficiency and reduce waste, supporting a circular economy.
In thermal power, the emphasis will be on energy-saving renovations and upgrading heating facilities. Thermal power plants will undergo digital and intelligent enhancements, including smart sensors and advanced control systems.
For electricity transmission and distribution, China will renovate old substations and power lines and replace outdated transformers and switches. State Grid Corp of China will invest over 600 billion yuan ($84 billion) this year to upgrade the grid, focusing on ultrahigh voltage direct current projects and digital grid systems. China Southern Power Grid will invest 195.3 billion yuan from 2024 to 2027.
Wind power and photovoltaics will also see significant updates. Wind farms older than 15 years will be encouraged to upgrade. Qin Haiyan of the Chinese Wind Energy Association said these upgrades could generate over 3 trillion yuan in output value from 2025 to 2030.
Moreover, the construction and upgrade of energy stations, including photovoltaic-storage-charging stations, will receive substantial investments. Zhou Libo of the China Electricity Council noted that investment in high-power charging equipment and recent technologies like automatic and vehicle-to-grid charging is expected to exceed 100 billion yuan.
