What we expect: SGCC will continue to invest heavily in its power transmission and distribution (T&D) assets in 2023 to ensure stable power supply and accommodate ever-increasing wind and solar generation capacity. For 2022, we estimated SGCC?s total capex at Chinese renminbi (RMB) 500 billion. China targets that renewable energy will contribute 40% of its generation capacity and 20% of volume by 2030, up from the 27% and 12% in 2021. Growth: Power demand in China should rebound about 5%-6% in 2023 from 3.6% in 2022, on the recovery of economic activities amid less stringent pandemic controls. This should support SGCC's revenue growth through the year. We believe T&D tariffs in the third regulatory period (2023-2025) will be comparable with
