China to invest over 20 trillion yuan in energy sector during 15th Five-Year Plan

China is planning a massive expansion of its energy sector during the “Fifteenth Five-Year Plan” period, with projected investments exceeding 20 trillion yuan. This represents a significant increase in capital flow compared to the previous five-year cycle, averaging over 10 billion yuan in daily investment.

The investment strategy is divided into three primary pillars: the power source side, the power grid side, and new energy business models. On the power source side, while renewables like wind and solar will account for nearly 60% of investment, there is an increasing emphasis on the stability of nuclear and hydropower projects.

The power grid sector is expected to see over 5 trillion yuan in investment, with a strategic shift from long-distance transmission to strengthening local distribution networks. This transition aims to better integrate distributed renewable energy and support the growing number of electric vehicle charging stations.

Finally, approximately 2 trillion yuan is earmarked for new energy business models, including green hydrogen, ammonia, methanol, new energy storage, and virtual power plants. The overarching goal is to build a clean, low-carbon, safe, and efficient new energy system to ensure national energy security and support carbon neutrality targets.