- China increased its grid expansion investment by 19% in 2024 to reduce wind and solar energy waste.
- The country plans further grid upgrades to integrate renewable energy and minimise curtailment costs.
China has increased its investment in grid expansion by 19% in 2024, aiming to reduce waste in wind and solar energy production and deliver more of its output to consumers. According to a Bloomberg report citing data from the National Energy Administration, grid expansion investments outpaced generation capacity by 7 percentage points over the first 11 months of the year.
Grid investment is expected to rise further, with the State Grid Corp, the country’s largest grid operator, planning substantial increases. Another major player, China Southern Power Grid, is also set to boost its investment in grid infrastructure.
Upgrading the grid is essential for integrating wind and solar energy into China’s energy system. These upgrades reduce the need for “curtailment,” which occurs when excess wind and solar output is wasted during periods of strong production and low demand. Without an expanded grid to transmit this excess energy, it often gets discarded, as seen in the UK, where consumers will face over $2 billion in costs this year to “balance the grid” by paying wind operators to shut down turbines.
To address this, China has been building ultra-high voltage transmission lines to transport electricity from significant wind and solar farms to areas with high demand over longer distances. However, with ongoing investment plans from grid operators, it is clear that more work is needed to integrate renewable energy across the country entirely.
As global demand for cleaner energy grows, China’s investments in grid infrastructure position it as a leader in the transition to renewable energy while addressing challenges like curtailment that can undermine the potential of these resources.