China power plan targets 90% new energy utilization by 2030

China's new power system plan targets 90 percent new energy utilization and 300 GW of storage by 2030, a blueprint that will drive investment across solar, wind, grid and battery supply chains.

Non-fossil energy will supply half of China's power generation by 2030, with new energy capacity reaching 2.8 billion kilowatts, the National Development and Reform Commission and National Energy Administration said in the plan released Aug. 3.

The document sets targets across the value chain: 300 GW of new energy storage, 160 GW of pumped hydro, 50 GW of virtual power plant regulation, 40 million charging points and a 90 percent national new energy utilization rate. Coal-fired units will shift from baseload to flexible support, with combined heat and power plants required to cut minimum output below 40 percent.

The quantified targets give equipment makers, storage integrators and grid technology providers a clear demand runway through 2030, while coal's role narrows to flexibility and backup, pressuring traditional thermal operators.

Storage and grid build-out anchor the 2030 targets

The plan calls for 300 GW of new energy storage by 2030, adding 160 GW during the 15th Five-Year Plan period, with grid-side independent storage able to shoulder peak supply reaching 140 GW. Pumped hydro will expand to 160 GW. Virtual power plants, a mechanism that aggregates distributed resources for grid balancing, will gain 50 GW of maximum regulation capacity, while vehicle-grid interaction adds another 50 GW of dispatchable charging.

Distribution grids must absorb 900 GW of distributed new energy, and west-to-east transmission capacity will exceed 420 GW. The plan also targets 40 million charging points to support 1.1 billion electric vehicles, with 300,000 high-power units along freight corridors. New energy development will lean on "desert, Gobi and barren" wind-solar bases in the north and west, with 100 percent renewable transmission pilot projects, while coastal provinces build offshore wind and nuclear capacity for local consumption.

Coal's pivot to flexible support reshapes the fleet

Coal-fired power shifts from baseload to a supporting role, with the plan requiring flexibility retrofits on all existing units and combined heat and power plants to cut minimum output below 40 percent. The share of 600 MW-class clean coal units will rise by 10 percentage points by 2030. Market-based electricity trading will expand to 70 percent of total consumption, with cross-region volumes reaching 2 trillion kilowatt-hours.

The plan also pushes artificial intelligence into grid operations and coordinates power with computing infrastructure, aiming to lift non-fossil power's contribution to system support to 40 percent. Electricity will rise to 35 percent of terminal energy consumption by 2030 as transport, industry and buildings electrify, with the plan targeting an electricity supply adequacy ratio above 1.1.

Power and nuclear shares rallied on the release, with 新能股份 rising for a second straight session and 深南电A and 华电辽能 hitting their daily limits, while nuclear names including 中国核建 also surged. The blueprint gives investors a dated roadmap for the world's largest power grid, with storage and grid equipment among the clearest beneficiaries.

This article is for informational purposes only and does not constitute investment advice.