Tear Sheet: State Grid Corp. of China

SGCC will likely continue to invest heavily in its power transmission and distribution (T&D) assets in 2024 to ensure stable power supply. China added 205 gigawatts (GW) of wind and solar generation capacity in the first 11 months of 2023. Of this, we estimate about 170 GW was installed in SGCC?s service area. The share of renewable power in China's capacity mix accordingly rose to 34% from 30% in 2022, versus the 2030 target of 40%. : The China Electricity Council expects power demand in China to grow about 6% in 2024, compared with 6.7% in 2023. This should support SGCC's revenue expansion, together with stable T&D tariffs in the third regulatory period (2023-2025). State Grid Corp. of China ,

...January 31, 2024 Heavy investments: SGCC will likely continue to invest heavily in its power transmission and distribution (T&D) assets in 2024 to ensure stable power supply. China added 205 gigawatts (GW) of wind and solar generation capacity in the first 11 months of 2023. Of this, we estimate about 170 GW was installed in SGCC's service area. The share of renewable power in China's capacity mix accordingly rose to 34% from 30% in 2022, versus the 2030 target of 40%. We estimate total capital expenditure (capex) of about Chinese renminbi (RMB) 500 billion for SGCC in 2023. This includes investments on upgrading T&D grids, control systems, and pump storage stations. The company has started constructing four direct-current ultra-high voltage (UHV) transmission lines (nameplate transmission capacity of 8 GW each) to connect renewable energy bases in northern/western China to demand centers in the east and central. While investments in these projects could stay high in 2024, we estimate they...

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