
News Infrastructure China 1033 16 January 2025
State Grid Corp. of China increases capital expenditures amid renewable energy growth
China’s largest power grid operator, State Grid Corp. of China, plans to increase investments to a record level amid rapid growth in renewable energy production, Bloomberg reports.
According to the Chinese state TV channel CCTV, the grid operator, which covers about 80% of the country’s territory, will spend more than 650 billion yuan ($89 billion) in 2025. Last year, the company announced capital expenditures of about 600 billion yuan.
China is still heavily dependent on coal-fired power plants. However, the country is building wind and solar power plants at an unprecedented pace to meet its climate commitments and reduce the need for fuel imports. The new unstable generation is putting more strain on the power grid, requiring more power lines and energy storage equipment. Increased spending on energy infrastructure could also boost demand for copper and steel.
In particular, in 2024, State Grid completed the construction of three new ultra-high voltage power lines, bringing the total number of such lines to 38.
This year, the world’s largest pumped storage power plant (PSHPP), Fengning, located in Hebei Province, near Beijing and Tianjin, became fully operational in China. This facility is a key part of China’s renewable energy infrastructure.
The total investment in the project, developed by State Grid Xinyuan Group (a subsidiary of State Grid Corp. of China), amounted to 19.24 billion yuan ($2.6 billion). Construction began in May 2013 and lasted more than 11 years.
As GMK Center reported earlier, the Chinese steelmaker HBIS Group has stepped up innovation and the use of low-carbon metallurgical technologies.