State Grid's "15th Five-Year" investment plan has been revealed: during this period, State Grid Corporation's fixed asset investment is projected to reach 4 trillion yuan, marking a 40% increase compared to the "14th Five-Year" investments, aimed at expanding effective investment to drive the high-quality development of the new power system's industrial and supply chains. Guojin Securities believes that looking ahead to 2026, the power grid industry will continue to show significant structural differentiation, with high-growth sectors pointing towards two core directions: domestic main grid power transmission and transformation, and the overseas expansion of power equipment; simultaneously, opportunities for an upward inflection point on the distribution grid side and outside the grid should be monitored. During the "15th Five-Year" period, focusing on strengthening the grid platform and constructing a new power system, State Grid will initially build a new-type grid platform featuring coordinated main, distribution, and micro grids, further consolidating the energy transmission network for "West-East Power Transmission" and "North-South Power Supply." It will accelerate the construction of UHV DC transmission channels for outward power delivery, aiming to increase cross-regional and inter-provincial power transmission capacity by over 30% compared to the end of the "14th Five-Year" plan. The company will also solidify digital-intelligent infrastructure, implement an "AI+" special initiative, and enhance the grid's digital capabilities. As demand for large-scale power supply climbs, multiple departments have introduced policies to increase investment in the power grid. On December 29, 2025, Zhang Zhigang, Party Secretary and Chairman of State Grid Corporation, emphasized the need to fully leverage the grid's foundational support and investment stimulation role, using greater efforts and more concrete measures to help expand domestic demand and stabilize growth; he also stressed increasing grid investment, adhering to the principle of moderately超前 (advancing ahead of need) in power development, closely aligning with major national strategies, and connecting with the construction of the "Two News" and "Two Heavy" initiatives to more effectively drive social investment and the development of industrial and supply chains. On December 31, 2025, the National Development and Reform Commission and the National Energy Administration issued the "Guiding Opinions on Promoting the High-Quality Development of the Power Grid," setting targets for 2030: the scale of "West-East Power Transmission" should exceed 420 million kilowatts,新增 (newly added) inter-provincial power mutual aid capacity should reach around 40 million kilowatts, support for new energy generation should account for about 30% of the total, the capacity to accommodate distributed new energy should reach 900 million kilowatts, and support should be provided for over 40 million charging infrastructure units. Caixin Securities anticipates two major trends on the power supply side during the "15th Five-Year" period: installed capacity of clean energy, represented by wind and solar power, will maintain growth, and the power supply structure will shift from being predominantly based on fossil fuel generation towards new energy providing reliable power support; the form of the power system will transition from the three elements of "source-grid-load" to the four elements of "source-grid-load-storage," with the grid featuring a coexistence of multiple new technological forms. Driven by the rapidly developing AI industry, AI technology iteration and the accelerated penetration of AI applications are leading to a surge in computing power demand, promoting the large-scale construction of AI Data Centers (AIDC). Grid modernization has become a key constraint affecting energy security, energy transition, and competitiveness. In 2026, AI investment and deployment are expected to continue growing, which will further drive the expansion of data center construction; securing sufficient energy and power will be a critical factor influencing AI enablement. S&P Global points out that in 2026, the surge in power demand resulting from the explosive growth of AI will continue to test the limits of power grids, revenue models, and sustainability goals, with the pace of progress depending on the ability to unlock new generation capacity and flexibility. In a high-growth scenario, S&P Global expects global data center power demand to increase by 17% in 2026; by 2030, the average annual growth rate could reach 14%, with potential demand possibly exceeding 2,200 terawatt-hours. Global demand for grid construction is rising, especially in regions like Europe and America where grid infrastructure is relatively weak, and grid aging is putting pressure on power systems. US utility companies and some European grid operators are actively increasing grid investment, while domestic companies are continuously boosting grid investment and expanding their overseas presence in equipment manufacturing. Huaxi Securities released a research report stating that, driven by the rapid global development of AIDC and sustained growth in grid construction investment, demand for power equipment is entering a boom cycle. The firm believes that companies possessing high-quality channel resources, leading technical capabilities, and actively deploying related production capacity are poised to benefit significantly, and it remains optimistic about companies expanding overseas that have the potential for breakthroughs and high gross margins in their international operations. Related concept stock DONGFANG ELEC (01072): A major domestic supplier of pumped storage units. The company is the core listed platform of the Dongfang Electric Corporation group, holding numerous core assets in power generation equipment manufacturing, engineering contracting, power station services, trade, and finance. Since commencing hydropower and thermal power businesses in the 1960s, the company has consistently served China's power system construction, adhering to a corporate DNA of technological innovation, and gradually building a comprehensive portfolio covering "hydro, thermal, nuclear, wind, solar, and gas" power generation. TIMES ELECTRIC (03898): The company's products are primarily used in State Grid's UHV DC transmission projects and flexible DC transmission projects. In the first quarter, the company reported operating revenue of 4.537 billion yuan (Renminbi), a year-on-year increase of 14.81%; net profit attributable to shareholders of the listed company was 631 million yuan, up 13.42% year-on-year; basic earnings per share were 0.45 yuan. HUADIAN POWER (01071): The company's wholly-owned subsidiary, Huadian Longkou Power Generation Co., Ltd., recently successfully completed the 168-hour full-load trial operation of the second unit of the Huadian Longkou Phase IV 2×660 MW cogeneration project (referred to as the "Huadian Longkou Phase IV Project"), marking its official entry into commercial operation. With this, both 660 MW ultra-supercritical units of the Huadian Longkou Phase IV Project have been fully constructed and operational, injecting new momentum into regional energy security and green, low-carbon development. CHINA POWER (02380): China Power announced that the Group's total consolidated electricity sales volume for November 2025 was 10,099,700 MWh, an increase of 15.38% compared to the same month last year, while the total consolidated electricity sales volume for the first eleven months of 2025 was approximately 115.6 million MWh.
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