(P1) Chinese Premier Li Qiang called for an accelerated build-out of a new national power grid during a tour of Sichuan province from March 30 to April 1, signaling a high-level policy push to support the country's clean energy sector.
(P2) "It is necessary to actively explore new architectures, new technologies, and new services to build a safe, reliable, green, low-carbon, and intelligent new power grid," Li said during a visit to a provincial power company.
(P3) The premier's tour included visits to photovoltaic leader Tongwei's global R&D center and state-owned heavyweight Dongfang Electric, which manufactures equipment for nuclear and hydropower projects. Li urged companies to increase R&D investment to break key technology bottlenecks and scale up new applications for solar, wind, and hydro power.
(P4) The directive is expected to drive significant state investment into China's renewable energy supply chain. The policy's focus on a "multi-energy complementary" system could create a tailwind for companies like Tongwei in solar and Dongfang Electric in hydro and grid infrastructure, potentially boosting their order books and stock performance through 2026.
Li's emphasis on creating a "new type of power grid" addresses a core challenge for renewable energy: intermittency. The premier highlighted Sichuan's unique position as a major clean energy base, calling for the province to lead in developing a system that can smoothly integrate hydro, wind, solar, and hydrogen power. This involves upgrading the grid's architecture to improve its ability to coordinate and regulate fluctuating power sources, ensuring a stable supply for industrial and residential use.
During his visit to the Yalong River Basin Hydropower Development Co., Li reviewed plans for a water-wind-solar integrated base. This model, which combines the stable output of hydropower with the variable generation from wind and solar, is central to China's strategy for meeting its green energy goals while maintaining grid stability.
The premier also signaled strong support for the manufacturing sector that underpins this energy transition. At Dongfang Electric and the National Heavy Machinery Group, Li inspected core components for nuclear and hydropower plants. He encouraged the state-owned enterprises to merge advanced technologies like artificial intelligence with their manufacturing processes.
This focus on domestic technology and advanced equipment aims to solidify China's dominance in the global clean energy supply chain, from solar panel production, where Tongwei is a major player, to the heavy-duty hardware required for large-scale hydro and nuclear installations.
This article is for informational purposes only and does not constitute investment advice.
