State Grid’s RMB 800B Plan to Connect 500 GW Renewables by 2027

Originally published at China Industry Intel. Read the complete report.

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China’s State Grid Unleashes Record ¥800B Grid Spend: A Blueprint for 500 GW Renewable Integration by 2027

China’s State Grid Corporation has announced a ¥800 billion (US$110 billion) capital expenditure plan for 2026–2027—the largest two-year grid investment in its history. The funding targets the expansion of ultra-high voltage (UHV) transmission, smart grid digitalization, and distributed renewable integration, with the explicit goal of connecting 500 GW of new wind and solar capacity by 2027. This build-out is central to China’s 2030 carbon peak strategy and reflects a decisive shift toward a power system dominated by clean energy. The investment represents a 45% increase over the previous two-year cycle (2024–2025), with the largest proportional jump in smart grid & digital spending (+67%) and distribution & renewable integration (+47%). For supply-chain analysts, the plan signals sustained high demand for UHV equipment, smart grid hardware, and distributed energy resource management systems, while also pointing to tighter coordination between generation and grid operators to minimize curtailment. State Grid’s commitment to deploying over 100 million smart meters and expanding 5G-enabled distribution networks underscores a systemic move toward real-time, data-driven grid management.

Key Market Takeaways:

• UHV Backbone Expansion Accelerates: State Grid will allocate ¥240 billion to UHV lines—a 33% increase over the previous cycle—aiming to boost long-distance transmission capacity by more than 30% by 2027. This directly reduces wind and solar curtailment rates and improves the economics of remote renewable projects in western provinces.
• Smart Grid & Digitalization Take Center Stage: ¥200 billion is earmarked for smart grid upgrades, including advanced sensors, digital twin platforms, and 5G-enabled distribution networks. The planned deployment of 100 million smart meters will enable demand-side response programs capable of shifting peak loads by up to 10%, enhancing grid resilience and operational efficiency.
• Equipment Suppliers Enter a Golden Era: Domestic leaders such as TBEA, China XD Group, and Pinggao Electric are poised to benefit from surging orders for high-voltage transformers, gas-insulated switchgear (GIS), and flexible DC transmission equipment. The grid automation and control systems market is expected to see double-digit compound growth through 2027.

Conclusion: State Grid’s record investment plan confirms that grid modernization—not just renewable capacity expansion—is the binding constraint for China’s energy transition, and equipment suppliers and digital solution providers will capture outsized value as the grid is rebuilt for a clean-energy future.

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