English
State Grid Corporation of China announced that its fixed asset investment during the “15th Five-Year Plan” period is expected to reach RMB 4 trillion, a 40% increase compared to the “14th Five-Year Plan” period, with a primary focus on new power system construction and technological innovation to drive industry chain development through expanded effective investment.
According to estimates by China Merchants Securities research team, based on State Grid’s fixed asset investment of RMB 650 billion in 2025, achieving the RMB 4 trillion total target for the “15th Five-Year Plan” period implies a compound annual growth rate of approximately 7%, roughly in line with the 7.1% growth rate during the “14th Five-Year Plan” period, with actual figures potentially higher. This signals that power grid investment is shifting from a “stabilizing growth” role to an accelerated phase of “building a new power system,” with industry prosperity expected to continue throughout the “15th Five-Year Plan” period.
Under the RMB 4 trillion investment outlook, listed companies along the industry chain have begun expanding capacity. Xuguang Electronics disclosed a private placement plan in February 2026, aiming to raise no more than RMB 1 billion to break through production bottlenecks in high-voltage vacuum interrupter products, with a focus on mass production of 72.5kV, 126kV, and 252kV high-voltage vacuum interrupters, directly serving the low-carbon transformation of domestic power grids and new energy grid integration needs.
High-voltage vacuum interrupters are core components for building new power systems, used in environmentally friendly gas-insulated switchgear and circuit breakers, replacing traditional sulfur hexafluoride gas solutions. As grid investment accelerates and new energy grid integration scales up, upstream and downstream enterprises in the high-voltage electrical equipment industry chain are expected to continue benefiting.
