China State Grid Corp will spend about 400bn yuan ($65bn) this year on the nation’s electricity networks as the country copes with an unprecedented influx of clean energy and higher demand.
The country will need to maintain spending at current levels for the next five years to accommodate higher electricity consumption and contributions from new energy sources.
Between 2008 and 2013, China’s annual energy consumption surged 51 percent and is expected to peak between 2035 and 2040.
The International Energy Agency estimates that between now until 2040, China will need to spend more than $4 trillion to overhaul the way it transmits and distributes electricity.
The grid investment is mainly driven by government policies as China looks to upgrade and update the networks with ultra-high voltage and smart technology.