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With the launch of the 15th Five-Year Plan for power grid investment, the transmission and substation construction sector is entering a golden period of growth.
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Release Date:
2026-03-06
As 2026 dawns, the power‑construction sector is poised to seize a historic opportunity for growth. According to the State Grid Corporation’s latest investment plan, fixed‑asset investment during the 15th Five‑Year Plan period will surpass RMB 4 trillion for the first time, representing an increase of more than 40% compared with the 14th Five‑Year Plan era. This substantial funding will be strategically allocated to building a new type of power system centered on new energy sources, with distribution networks—often described as the “capillaries” of power transmission—and backbone grids, which shoulder the critical task of regional interconnection, emerging as top priorities.
In past grid‑building efforts, investment has largely focused on the ultra‑high‑voltage “main arteries” that span multiple regions. However, with the large‑scale integration of distributed photovoltaics, electric‑vehicle charging stations, and new types of energy storage, the distribution network—often likened to the “capillaries”—is now grappling with insufficient capacity. Industry experts note that during the 15th Five‑Year Plan period, investment in the distribution network is expected to account for more than 60%, with priority given to addressing weak grid structures and low levels of automation. For specialized firms that have long been deeply engaged in transmission and transformation projects at 220 kV and below, this represents a significant tailwind.
Meanwhile, the upgrade and renovation of the backbone grid are progressing in parallel. To meet the transmission needs of large-scale wind and solar power bases located in sandy, rocky, and desolate areas, it is imperative to enhance inter‑provincial grid interconnection and mutual support capabilities. This calls for contractors not only to possess robust construction expertise but also to be well-versed in overhead‑line construction techniques suited to complex environments. Amidst the surging trends shaping the industry, power‑construction firms are shifting from traditional civil engineering and installation toward end-to-end digital and intelligent services. By adopting advanced construction equipment and management practices, they ensure that, even during peak investment periods, they can deliver high‑quality projects and provide a reliable power supply to support economic and social development.
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