Hong Kong Stock Concept Tracking | Investment in New-Type Power Grid During 15th Five-Year Plan Expected to Exceed 5 Trillion Yuan, Power Construction Enters Boom Cycle (Including Related Stocks)

It is learned that the National Development and Reform Commission indicated that investment in China's new-type power grid during the "15th Five-Year Plan" period is projected to surpass 5 trillion yuan. The construction of a new-type power grid is of significant importance for ensuring energy security and promoting green development. It can effectively address the continuously rising demand for new energy power and facilitate the structural optimization of the energy mix. With the continuous increase in investment, the power grid sector is poised to enter an upgrade and construction boom cycle, potentially placing power stocks on an upward trajectory.

Currently, China has established a large-scale, safe, and technologically advanced national robust interconnected power grid, effectively guaranteeing national electricity consumption. In 2025, China's total electricity consumption by the whole society exceeded 10 trillion kilowatt-hours for the first time, ranking first globally. Behind this massive electricity consumption is a safe, stable, and efficient national interconnected power grid providing reliable electricity supply.

"The current demand for new energy integration in China continues to climb, the pressure from regional imbalances in power supply and demand persists, and the complexity of safe operation at all grid levels is increasing. This necessitates building a new-type power grid that is more secure, reliable, green, low-carbon, resilient, and intelligent," stated Li Chao, Deputy Director of the Policy Research Office and Spokesperson for the National Development and Reform Commission.

The construction of the new-type power grid not only opens new pathways for the local consumption of new energy but also provides low-cost, highly reliable green power solutions for emerging industries such as computing facilities and green hydrogen/ammonia/alcohol production. This holds profound significance for promoting China's green and low-carbon energy transition and high-quality industrial development.

For new energy power generation enterprises, the channels for new energy absorption have significantly broadened. This is particularly beneficial for projects previously unable to connect to the grid due to insufficient grid access capacity, offering them new opportunities. Priority support for green power direct connection for emerging industries like computing facilities and green hydrogen/ammonia/alcohol production has found stable, large-scale users for new energy projects. Green power operators are expected to undergo a value reassessment.

"Essentially, the new-type power grid is a modernized grid configuration designed to coordinate multiple objectives, including rigid growth in electricity demand, the gradual increase in the proportion of new energy supply, and the diversified development of new power business formats. Through sustained and stable investment, accelerating the construction of the new-type power grid will help fortify the national energy security barrier, facilitate the conversion of more wind, solar, and hydropower into clean electricity, and provide robust support for high-quality economic and social development," explained Tang Guangrui, an expert from the State Grid Energy Research Institute.

China's annual electricity consumption exceeding 10 trillion kilowatt-hours effectively supports the integration and consumption of over 1.8 billion kilowatts of new energy capacity. Simultaneously, the pursuit of energy security, cost reduction, and green transformation continuously tests grid resilience. Globally, nations are increasing investments in power grids, suggesting the sector may be entering a boom cycle.

Internationally, actions are frequent. Europe has proposed a comprehensive power grid plan expected to leverage 1.2 trillion euros in grid investment. The three major US grid operators have launched plans totaling $75 billion for grid transmission and distribution upgrades and renovations.

Guotai Haitong Securities believes that with the ongoing advancement of electrification, coupled with the sustained high-load demand driven by artificial intelligence and extreme heat driven by climate warming, electricity demand no longer simply follows economic growth. Instead, it exhibits a structural characteristic of "base load elevation + peak amplification." The share of electricity in terminal energy consumption continues to rise, making it the core carrier for almost all new energy demand.

Driven by the rapidly developing AI industry, AI technological iterations and the accelerated penetration of AI applications are spurring a surge in computing power demand, promoting large-scale construction of AI data centers (AIDC). Grid modernization has become a key constraint affecting energy security, energy transition, and competitiveness.

Morgan Stanley posits that AI data centers, power shortages, geopolitics, and supply chain restructuring will collectively propel the energy industry into a new golden era.

Related Concept Stocks: DONGFANG ELEC (01072): DONGFANG ELEC released its Q1 2026 report. The group achieved operating revenue of 17.47 billion yuan, a year-on-year increase of 5.57%; net profit attributable to shareholders of the listed company was 1.585 billion yuan, a year-on-year increase of 37.41%; basic earnings per share were 0.46 yuan. TIMES ELECTRIC (03898): The company announced its 2025 annual results. The group achieved operating revenue of 28.703 billion yuan, a year-on-year increase of 15.23%; net profit attributable to the parent company's shareholders was 4.097 billion yuan, a year-on-year increase of 10.64%; earnings per share were 2.99 yuan; a cash dividend of 6.80 yuan per 10 shares is proposed. The company, based on the dual tracks of transportation and energy, adheres to concentric diversified development, deepens synergistic development, and has significantly improved operational quality and efficiency. HUADIAN POWER (01071): For the period ending March 31, 2026, the company's cumulative power generation for Q1 2026 was 59.02 million MWh, an increase of 14.85% compared to the announced data for the same period last year, but a decrease of approximately 8.39% compared to the restated data for the same period last year; electricity sold online was 55.37 million MWh, an increase of 15.32% compared to the announced data for the same period last year, but a decrease of approximately 8.45% compared to the restated data for the same period last year. CHINA POWER (02380): CHINA POWER announced that the group's total consolidated electricity sales for March 2026 were approximately 10.5281 million MWh, and the total consolidated electricity sales for the first three months of 2026 were approximately 29.12 million MWh. Subsidiary Yuanda Engineering Company recently entered into contracts with Hechuan Power Generation and Shandong Ludian, with contract values of 117.8 million yuan (approximately equivalent to 134 million HKD) and 79.25 million yuan (approximately equivalent to 91.092 million HKD), respectively.