State Grid Corp of China said it would invest more than 500 billion yuan ($69.6 billion) in grid network construction this year to ensure power supply stability and boost green power consumption.

The investment will be focused on construction of ultra-high voltage power transmission projects, while the company also vowed to continue stepping up construction of clean energy power transmission, intelligent power distribution systems, new energy storage regulation and vehicle network interaction, among others.

UHV transmission lines refer to power transmission cables operating with greater than 800 kilovolts of direct current, or 1,000 kV of alternating current. Compared with traditional transmission lines, UHV lines not only increase transmission capacity and extend transmission distances, but also reduce transmission losses.

The Beijing-based State-owned enterprise said six UHV AC power transmission projects are expected to be completed and put into operation this year, while the company will also promote the approval of several new UHV projects, it said.

An analyst said acceleration of investment in grid construction by State Grid, the largest power provider in the country, will not only guarantee sufficient energy supply, but also provide more green power in the country's energy mix.

Kou Nannan, head of China Research at BloombergNEF, said most new energy sources are intermittent with rapid and random variables, making it difficult to maintain stable and steady power generation, thus posing a threat to steady grid operation.

Investment in infrastructure, such as upgrading and expanding the grid, as well as developing energy storage systems, will play a key role in accelerating China's green and low-carbon energy transformation in the years to come, Kou said.

While the country's green energy transition creates growth opportunities, it can also put significant strain on existing grids. For the power distribution industry, which has not experienced major changes in half a century, energy transition means fundamental transformation, global consultancy Accenture said in a report.

Increasing investment in the grid network will lead to greater use of transmission channels, and help shore up investor confidence in wind and solar projects, it said.

China, which vows to peak carbon emissions before 2030 and achieve carbon neutrality before 2060, has pledged to build a new electric power system with the share of new energy resources rising further.

The National Energy Administration said China's installed capacity of renewable energy exceeded that of thermal power last year, with solar and wind power playing a major role in allowing green energy's installed capacity to exceed 1 billion kilowatts.

Minsheng Securities said the country's power grid investment scale will witness a substantial increase during the 14th Five-Year Plan (2021-25) period, while intelligent distribution networks and digitized transformations will be key.

State Grid has for years been accelerating construction of the power grid. It said earlier that it would complete construction of 38 UHV projects during the period. Total investment, meanwhile, is expected to reach 380 billion yuan, up 35.7 percent compared with that during the previous five years, it said.

zhengxin@chinadaily.com.cn