Editor's note: Zhang Xuan is the director of the Energy Strategy and Policy Research Institute at the Energy Research Development Institute under China Southern Power Grid (CSG). The article reflects the author's opinions and not necessarily the views of CGTN.

In the opening year of China's 15th Five-Year Plan (2026-2030), the Central Committee of the Communist Party of China (CPC) has laid out a coordinated plan for the "six networks," including the water network, the new-type power grid, the computing power network, the next-generation communication network, the urban underground pipeline network and the logistics network.

The new-type power grid carries particular weight. According to the National Development and Reform Commission, investment in China's new-type power grids during this five-year period is expected to exceed 5 trillion yuan (about $749.27 billion), far surpassing the scale of the 14th Five-Year Plan period (2021-2025).

This unprecedented investment is not aimed at simply expanding transmission capacity, but at a systematic "transforming" of the grid's functions, forms and operating models.

Why the conventional grid is no longer sufficient

Conventional grids were designed around conventional generation such as coal and hydro with relatively stable and controllable output, where dispatch operators only needed to forecast the load and match generation. But as wind and solar become the main sources of new capacity, this logic is being upended.

Data from the National Energy Administration shows that by the end of September 2026, China's cumulative installed wind and solar capacity reached 2.01 billion kilowatts (kW), accounting for roughly half of the country's total installed capacity of 4.13 billion kW. The volatility, randomness and intermittency of renewables pose new challenges: solar output surges around midday, potentially creating oversupply, then falls rapidly after sunset, while periods of high wind often fail to coincide with peak load.

Extreme weather has further amplified the problem. This summer, temperatures in many parts of China broke historical records. Loads on six regional grids and 23 provincial grids repeatedly hit new highs, while the nationwide peak load reached 1.56 billion kW. With air-conditioning demand rising rigidly under heat and wind-solar output fluctuating sharply with weather, real-time grid balancing has become exponentially harder.

If the conventional grid architecture and operating model were retained, large-scale renewables would face the risk of not being able to be transmitted, absorbed or dispatched, potentially leading to the coexistence of curtailment and supply tightness. This is precisely why China must "transform" its grid.

What makes the new-type grid 'new'

The new-type grid is not a single technological breakthrough but a coordinated operating system underpinned by backbone and distribution grids and supplemented by microgrids.

The backbone grid emphasizes flexible configuration to optimize the allocation of clean energy over vast distances. With energy resources concentrated in western China and load centers generally located in the eastern side of the country, China must rely on a flexibly interconnected backbone to enable the free flow of power across regions and provinces.  

The world's first ±800 kV multi-terminal Voltage Source Converter-High Voltage Direct Current (VSC-HVDC ) project, the Kunliulong VSC-HVDC project, links Yunnan, Guizhou, Guangdong provinces and Guangxi Zhuang Autonomous Region with 8 gigawatts (GW) of transmission capacity over 1,452 kilometers, delivering hydropower from the Wudongde Hydropower Station to load centers in Guangdong and Guangxi.

The distribution grid emphasizes resilience and interaction – capable of accommodating distributed renewables while withstanding external shocks such as typhoons and extreme heat. With the massive integration of rooftop solar, electric vehicles and user-side storage, distribution grids are shifting from one-way power supply to local energy platforms that aggregate distributed resources and enhance system flexibility.  

During this summer's heat wave in south China's Shenzhen, 61 operators and more than 14,000 users participated in virtual power plant (VPP) dispatch. The Shenzhen VPP management center aggregated up to 1.4 GW of adjustable capacity in a short period – equivalent to the output of a medium-sized coal plant – effectively easing pressure on grid operations.

Microgrids emphasize elastic balancing, maintaining local supply-demand equilibrium autonomously while interacting flexibly with the main grid. In industrial parks, buildings, communities and remote areas, microgrids integrating distributed solar, small wind, storage and charging facilities can achieve localized source-grid-load-storage (SGLS) balance and safeguard critical loads.

In a simulation test conducted on Dadaosha Island in Guangzhou's Panyu District, when the external grid was disconnected, microgrid clusters powered by methanol-to-hydrogen generation were quickly activated. Once the external fault was cleared, the microgrid smoothly withdrew, ensuring uninterrupted power for island residents.

What the new-type grid actually supports

The value of the new-type grid ultimately manifests in three dimensions: reliable supply, green transition and industrial support.

In terms of supply reliability, ultra-high-voltage cross-regional transmission by the backbone grid, the distribution grid's hosting and adjustment of distributed flexible resources, and microgrids' local autonomy together form a multi-layered, multidimensional power security system that enhances the grid's ability to cope with extreme weather and other emergencies.

In terms of green absorption, China's wind and solar generation reached 1.92 trillion kilowatt-hours (kWh) in the first three quarters of 2026, accounting for about 23.8% of total electricity consumption, with the carbon-reduction benefits of large-scale renewable substitution continuing to materialize.

The new-type grid is also providing critical support for the digital economy and industrial upgrading. As AI and digital infrastructure accelerate, computing loads continue to expand, placing higher demands on the reliability, stability and green credentials of power supply. The new-type grid strengthens alignment between power planning and computing layout to enhance supply security for large computing clusters; integrates substations with computing stations and new-type energy storage to reduce construction and energy costs of computing infrastructure; and coordinates power dispatch with computing scheduling to shift computing tasks flexibly to periods and regions with abundant green power and lower prices.

The 15th Five-Year Plan period is a crucial phase for carbon peaking and a hard stretch for the energy transition. What the 5-trillion-yuan investment is "transforming" is a smarter, more flexible, resilient and elastic network for allocating energy resources. It will couple deeply and develop in coordination with the other five networks, jointly underpinning a green, low-carbon, secure, efficient and interconnected future.