On August 3, China's National Development and Reform Commission and the National Energy Administration jointly released the "15th Five-Year Plan" for constructing a new power system, outlining 13 key measures to fast-track the development of a clean, low-carbon, secure, efficient, and flexible smart grid. This policy marks the beginning of a fresh investment cycle for the power industry, setting the stage for robust growth.

The plan sets a target for the initial completion of the new power system by 2030. Key goals include a green power supply structure where non-fossil fuel power generation accounts for 50% of total output. Power supply capacity will be enhanced, grid resilience and mutual support will be significantly improved, and supply adequacy will remain at a reasonable level to meet the electricity needs of economic and social development. By 2030, the system will be capable of integrating over 2.8 billion kilowatts of renewable energy and will support a charging infrastructure network for over 110 million electric vehicles.

Green and low-carbon principles are central to the new plan. The policy emphasizes guiding the development and consumption of new energy sources, setting a national wind and solar utilization rate target of around 90% to support the goal of increasing non-fossil energy consumption. Regional targets will be based on local conditions, including resource availability, grid capacity, and load growth.

Yang Kun, executive vice president of the China Electricity Council, noted that China has already established a clean power supply system with a mix of coal, gas, nuclear, and renewable energy. During the 15th Five-Year Plan period, the dominant position of non-fossil fuel power generation capacity will be further strengthened, solidifying the role of electricity in the energy consumption structure.

China Securities Co., Ltd. (CSC) analyst notes that the country is moving to implement a dual control system for total carbon emissions and intensity, expanding the carbon market to cover all major industrial sectors by 2027. The plan also highlights the elimination of outdated production capacity and the promotion of green fuels like hydrogen and green methanol. These policies benefit carbon sink assets, low-carbon leaders, carbon capture and retrofitting service providers, green electricity storage, and the green hydrogen industrial chain, suggesting focused investment opportunities in high-certainty low-carbon transitions.

To foster collaborative development between the power sector and related fields, the plan aims to enhance power supply security to meet the high-reliability needs of computing infrastructure. It calls for coordinated planning of energy and computing resources, promoting models like source-grid-load-storage integration and direct green electricity supply for data centers. This will enable aggregated green electricity trading, local consumption, and increase the proportion of green electricity used by computing facilities, while also recovering waste heat from these facilities.

Support for new energy development is contingent on sustained demand growth. Artificial intelligence is the fastest-growing electricity consumer, while the rapid expansion of industries like new energy vehicles (NEVs) is driving strong electricity demand. According to data from Cui Dongshu, secretary-general of the China Passenger Car Association, NEV market share has exceeded 60% in eastern plains, southern provinces, and first-tier cities, highlighting regional structural differences in energy consumption.

AI development places higher demands on the grid, and a robust power system will provide a competitive edge. The National Energy Administration projects that during the 15th Five-Year Plan period, national data center electricity consumption will add over 100 billion kilowatt-hours annually, reaching 800 billion kilowatt-hours by 2030, or about 6% of total social electricity consumption, up from 1.6% currently. Computing power is becoming a major driver of future electricity demand.

Xiao Hongwei, a researcher at the National Information Center's Economic Forecasting Department, stated that the plan not only focuses on power development but also promotes the integration of electricity with computing and transportation, leveraging the new power system to boost the broader modern industrial system.

CITIC Securities research notes that massive AI token demand creates long-term growth space for computing power, and both Chinese and US companies are increasing capital expenditure, with China's computing investment still having significant room for growth. China's advantages in power supply and green electricity costs, combined with policies like direct green electricity supply and source-grid-load-storage integration, are creating a unique industrial edge. The computing power buildout is also boosting demand for metals like copper and tin, while the asset-heavy nature of data centers opens up new funding channels through IDC REITs, supporting sector expansion. The computing and power-related industrial chains offer medium-to-long-term investment value.

CHINA RES POWER (00836): In the first half of 2026, the group's total electricity sales reached 120 million megawatt-hours, up 12.8% year-on-year. Wind power sales were 27.5 million megawatt-hours, down 3.2% due to lower wind speeds, while solar power sales jumped 42.8% to 8.2 million megawatt-hours.

HUADIAN POWER (01071): For the six months ended June 30, 2026, the company's total power generation was 108 million megawatt-hours, a decrease of 10.65% compared to the same period last year. On-grid electricity was 101 million megawatt-hours, down 10.82%.

CHINA POWER (02380): Total consolidated electricity sales for June 2026 were approximately 11.46 million megawatt-hours, up 1.45% from the same month in 2025. For the first half of 2026, total sales reached about 62.03 million megawatt-hours.

CGN POWER (01816): From January to June 2026, the group's total nuclear power generation was approximately 117.77 billion kilowatt-hours, a decrease of 2.12% year-on-year. Total on-grid commercial electricity was around 109.60 billion kilowatt-hours, down 3.32%.