Electricity demand in much of China hit a record this week due to scorching summer temperatures, driving grid loads to all-time highs, the State Grid Corporation of China said today, as cited by Reuters.
On Monday and Tuesday, the company said, electricity loads reached a record in the country’s northern, northeastern, and eastern regions. No blackouts have been reported, however, as the grid operator moves in time to direct more baseload electricity where it is needed for air-conditioning.
According to forecasts from the Chinese state meteorological agency, temperatures across much of China will remain high, in some cases potentially reaching or even exceeding historical peaks, the Reuters report also noted.
In January this year, State Grid Corporation of China, the world’s largest utility enterprise covering 88% of China’s land area and serving over 1.1 billion people, said it planned to spend $574 billion (4 trillion Chinese yuan) on fixed-asset investments for the five years to 2030, as part of its 2026-2030 investment plan.
The sum is 40% higher than what the State Grid Corporation of China spent in the previous five-year investment period to 2025. The company will use the money to upgrade and expand the power transmission and distribution systems amid a surge in renewable energy capacity installations and a continued rise in electricity demand.
China is the world’s biggest builder of wind and solar, but it has also expanded its coal-powered generation capacity to ensure stable supply that can respond to demand changes in a timely fashion. Yet the country is also building out its battery storage capacity to be able to utilize more of its wind and solar electricity output. China plans to have its battery storage capacity more than double to 180 gigawatts by 2027 in a new plan aimed at attracting $35.1 billion (250 billion yuan).
By Irina Slav for Oilprice.com
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