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With a dual-pronged approach—ultra-high voltage and distribution networks—the structure of power grid development is undergoing profound adjustments.
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Release Date:
2026-03-06
A recently released power‑sector plan indicates that during the 15th Five-Year Plan period, State Grid aims to commission 15 ultra‑high‑voltage DC transmission projects, boosting interprovincial and interregional transmission capacity by 35%. This means that clean energy from the western and northern regions will be delivered more efficiently to the load centers in eastern and central China. However, while UHV technology addresses the challenge of “being able to transmit,” ensuring that the power can “reach its destination and be effectively utilized” depends on the carrying capacity of the distribution grid.
This logic is reshaping the investment landscape of the power grid. According to authoritative analysis, among the overall 4-trillion-yuan investment package, distribution‑network spending is expected to account for more than 60%, with an annual compound growth rate of 10%. The modernization of the distribution network is no longer limited to expanding transmission capacity; it is evolving toward flexibility, intelligence, and digitalization. It must accommodate local consumption of distributed photovoltaic generation, orderly charging of electric vehicles, and flexible, two‑way interactions with user‑side energy storage. This dual‑focus approach—balancing a robust transmission grid with an intelligent distribution network—creates differentiated growth opportunities for enterprises at different levels.
For companies specializing in transmission and distribution projects, it is essential to both capitalize on the market growth driven by UHV‑related infrastructure and keep pace with the smart‑grid transformation of distribution networks, while strengthening their technological capabilities in areas such as relay protection and automated commissioning. The profound restructuring of the power‑grid construction landscape signals that, over the next five years, the power‑construction sector will enter a new competitive landscape characterized by diversified development and simultaneous improvements in both scale and quality.
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