State Grid Corporation of China has outlined an ambitious plan to increase its renewable power capacity by an average of 200 gigawatts annually through 2030, aiming to raise the share of clean energy to over 30 percent of its total power generation. This initiative forms part of the company’s comprehensive decarbonization strategy for the 15th Five-Year Plan period, spanning 2026 to 2030.
As the world’s largest power utility, State Grid is focusing on integrating vast renewable energy projects across its network, including large-scale bases in desert and Gobi regions, offshore wind farms, and distributed energy installations. The plan underscores the company’s commitment to meeting all incremental electricity demand with renewable sources.
Recent data from China’s National Energy Administration (NEA) highlights the rapid expansion of the country’s renewable sector. By the end of July, China’s total installed power generation capacity reached 4.08 billion kilowatts, marking an 11 percent increase year-on-year. Solar capacity rose 16.1 percent to 1.29 billion kilowatts, while wind capacity surged 19.5 percent to 690 million kilowatts. The growth of intermittent power sources places increasing demands on the grid’s ability to maintain stability and reliability.
To address these challenges, State Grid plans significant investments in improving system flexibility. The company aims to have more than 120 gigawatts of pumped-hydro storage operational or under construction by 2030, complemented by an additional 140 gigawatts of new energy storage capacity during the same period. Additionally, traditional coal-fired power plants will undergo low-carbon retrofits to reduce their minimum output levels to 35 percent of rated capacity, enhancing the grid’s peak-shaving capabilities and facilitating greater renewable integration.
Massive transmission infrastructure development is also a key component of the strategy. State Grid intends to commission 15 new ultra-high voltage direct current (UHVDC) cross-regional lines by 2030, boosting cross-provincial transmission capacity to 50 gigawatts. Investment in national grid infrastructure has accelerated, with expenditures reaching 302.7 billion yuan (approximately $45 billion) in the first half of 2024, a 4 percent increase compared to the previous year. The company’s fixed-asset investments surpassed 310 billion yuan, supporting 3.48 trillion kilowatt-hours of electricity trading and enabling enhanced power sharing across regions.
At the distribution level, the utility is modernizing networks to accommodate more than 60 gigawatts of distributed renewable power annually. Initiatives include deploying virtual power plants and rural microgrids to optimize on-site consumption and improve real-time demand response.
Experts note that integrating such a large share of renewable energy into the power system requires a coordinated, multi-sector effort. Chen Guoping, vice-chairman of the China Energy Research Society, emphasized the complexity involved, stating that the spatial and temporal mismatch between renewable energy output and load demand remains the main obstacle. He highlighted that achieving high-quality renewable energy development depends on collaboration across power, heating, industry, transportation, and construction sectors.