China has issued critical new guidance to accelerate the modernization of its power grid, shifting focus from “building generation” to “building connectivity.”
Issued by the NDRC and the National Energy Administration, the directive aims to solve the renewable curtailment issue by bolstering the West-to-East power transmission network.
⚡ KEY 2030 TARGETS:
1️⃣ Massive Transmission Scale: The system aims to support a west-to-east power transmission capacity exceeding 420 GW by 2030.
2️⃣ Renewable Integration:
- The Mix: “New Energy” (renewables) to account for ~30% of total power output.
- Flexibility: Adding ~40 GW of interprovincial balancing capacity to manage intermittency.
3️⃣ Strategic Pivot (The Investment Opportunity): Crucially, the guidance explicitly encourages private capital to participate in grid investment and construction.
- Constraint: A warning against “over-building,” signalling a shift towards CapEx efficiency and smart grid technologies rather than just raw infrastructure pouring.
💡 ANALYST TAKEAWAY: The bottleneck for China’s renewable ambitions has long been the grid’s inability to absorb surges in solar/wind from the West. This policy signals a “Hardware Upgrade” phase for the Chinese energy sector. For international investors, the opening for private capital in grid infrastructure is a rare and significant policy signal.
👇 Cleantech Investors: Is the “West-to-East” transmission project the world’s largest battery?