China will overhaul its power infrastructure, which has emerged as a core competitive edge in the age of artificial intelligence (AI). Power grid investment is expected to total 5 trillion yuan (1,058 trillion won) by 2030. To ensure stable supply of renewable energy, it will vastly expand energy storage systems (ESS) and ultra-high-voltage transmission networks, and pursue "computing-power and electricity coordination" (算电协同) as a national strategy that links AI data centers with the power grid, aiming to expand the AI industry and renewable energy at the same time.
The National Development and Reform Commission and the National Energy Administration announced on the 3rd a "15th Five-Year Plan (2026–2030) for building a new power system." With "stable power supply and demand" as the top priority, the plan sets out 16 key goals, including expanding the share of non-fossil energy generation, advancing the power grid, and managing power demand.
◇ Grow the power grid and AI together with the "computing-power and electricity coordination" strategy
A feature of this plan is that it was designed to link the AI industry with power infrastructure. AI computation requires massive power because large-scale data centers must run 24 hours a day without interruption. For this reason, global big tech companies such as OpenAI, Microsoft (MS), and Meta have also jumped into the race to secure power.
To support the development of its AI industry, the Chinese government will fully push the "computing-power and electricity coordination" project. The core is to link the power demand of data centers with renewable energy supply around the national computing hub. By simultaneously building AI data centers and the power grid—such as linking the power demand of smart computing and supercomputing facilities with renewable energy resources—the plan aims to stably supply the power needed for the AI industry. It also set the direction of "strengthen computing power with electricity, and promote the power system with computing power" (以电强算、以算促电), seeking the joint growth of the AI and power industries.
◇ Back up renewables with ESS and ultra-high-voltage transmission
ESS and ultra-high-voltage transmission will also be expanded significantly. China has the world's largest renewable energy generation capacity, but renewable output is variable, so supply stability is relatively weaker. As the share of renewables rises, securing flexibility and stability in the power grid has emerged as a key task.
In response, the authorities plan to foster ESS—which stores electricity when generation is abundant and discharges it when demand peaks—as core infrastructure. Over the five years through 2030, the plan will expand new ESS installations to 300 million kW, of which 140 million kW will be built as standalone ESS capable of meeting peak power demand. Accordingly, ESS is expected to become a central pillar of China's future power system.
To transmit renewable energy faster and more stably, investment in the power grid will also be greatly increased. The China Electricity Council projected that over the next five years, nationwide power grid investment in fixed assets will exceed 5 trillion yuan, up more than 80% from the previous five-year period. During this period, 15 ultra-high-voltage (UHV) transmission projects will be newly completed, and the transmission volume sent from China's western region—where renewable power plants are concentrated—to power-hungry eastern urban areas will exceed 420 million kW. In addition, it will promote distribution grid digitalization and the construction of smart microgrids.
The plan also set a goal of maintaining the nationwide renewable energy utilization rate at around 90%. To expand local consumption of renewable energy, it will foster new business models such as direct green power supply and smart microgrids. To integrate distributed power resources, by 2030 it will expand the maximum regulation capacity of virtual power plants to more than 50 million kW. Sun Jie, chief sustainability officer (CSO) of Envision Group, told 21st Century Business Herald, "So far, more than 20 provinces and cities in China have announced related policies, and 105 direct green power supply projects have already been approved," adding, "Policies for local consumption of green power have moved beyond the pilot stage into active promotion."