China’s Power Demand Hits Records as Heatwave Grips Key Regions

This week, electricity demand in various parts of China reached record levels due to extreme summer temperatures, according to the State Grid Corporation of China. On Monday and Tuesday, grid loads hit all-time highs in China's northern, northeastern, and eastern regions. Despite the extreme conditions, no blackouts have been reported, as the grid operator has been directing additional baseload electricity to areas where it is needed for air-conditioning.

China's State Meteorological Agency forecasts temperatures will continue to stay high, with some areas potentially reaching or surpassing historical temperature peaks. In January, the State Grid Corporation of China announced its plan to invest $574 billion (4 trillion Chinese yuan) in fixed-asset investments from 2026 to 2030, which is 40% more than the previous five-year investment period to 2025.

The company will use the funds to upgrade and expand power transmission and distribution systems as it deals with an increase in renewable energy capacity installations and a growing electricity demand.

China is the world's largest builder of wind and solar energy, but it has also expanded its coal-powered generation capacity to maintain a stable power supply that can rapidly respond to demand changes. As part of its strategy to incorporate more wind and solar electricity output, the country is also developing its battery storage capacity. According to a new plan, China aims to double its battery storage capacity to 180 gigawatts by 2027, a move that is expected to attract $35.1 billion (250 billion yuan) in investment.