China’s electricity grid is set for an unparalleled investment of more than $800bn in the next six years to overcome strains on the energy system as the country makes a rapid shift from coal power to renewable sources.
China’s creaking grid represents a major constraint to progress on its green energy transition. During the first four months of this year alone, China invested Rmb122.9bn ($17bn) in its power grid projects, a 24.9 per cent year-on-year increase. That compares with the $3.5bn announced last October by US President Joe Biden’s administration, which covers 58 projects across 44 states.
China’s forecast capital expenditure is set to rise from about $102bn this year to $157bn by 2030, according to data from Rystad Energy, a research group.