Key facts
- Electricity demand in China hit record highs this week due to a severe heatwave.
- Record electricity loads were observed in the country's northern, northeastern, and eastern regions on Monday and Tuesday.
- The State Grid Corporation of China is managing the increased demand to prevent blackouts.
- Forecasts predict continued high temperatures across China.
- State Grid Corporation of China plans significant investments in power transmission and distribution systems by 2030.
Record electricity demand has gripped China this week, driven by scorching summer temperatures that have pushed grid loads to all-time highs in key regions. The State Grid Corporation of China reported that Monday and Tuesday saw record electricity loads in the country's northern, northeastern, and eastern areas.
Despite the surge, the grid operator has managed to direct baseload electricity to where it is needed for air-conditioning, preventing reported blackouts. Forecasts from the Chinese state meteorological agency indicate that high temperatures are expected to persist across much of the country, potentially reaching historical peaks.
In response to rising electricity demand and the expansion of renewable energy, State Grid Corporation of China, which serves over 1.1 billion people across 88% of China's land area, announced plans in January to invest $574 billion (4 trillion yuan) in fixed-asset investments for the five years to 2030. This represents a 40% increase compared to the previous five-year investment period.
China is a leading builder of wind and solar power but also maintains coal-fired generation capacity to ensure stable supply. The nation is also significantly expanding its battery storage capacity, aiming to more than double it to 180 gigawatts by 2027, a move expected to attract $35.1 billion (250 billion yuan) in investment.