As 2026 marks the opening year of the 15th Five-Year Plan, State Grid and China Southern Power Grid have jointly unveiled a nearly RMB 5 trillion power grid investment package. This milestone signals that China’s power grid development is entering a new phase with average annual investment approaching RMB 1 trillion, and that the construction of a new-type power system is accelerating from “planning and blueprint” to “on-the-ground execution.”
As the hub connecting power generation and consumption, the power grid is the core of the new-type power system. The nearly RMB 5 trillion investment aligns with the top-level design set out in Document No. 1710 of the National Energy Administration, directly addressing key bottlenecks in renewable energy integration. It focuses on rebuilding a three-tier coordinated architecture encompassing the backbone grid, distribution networks, and smart microgrids. Energy storage, as the “key enabler” for overcoming renewable integration challenges, has emerged as the most promising golden growth track. Zhiguang Electric’s core product—the cascaded high-voltage energy storage system—precisely matches the strategic priorities of grid investment. With multiple technological advantages and proven operating performance, it is poised for explosive growth during the 15th Five-Year Plan period.
The RMB 5 trillion investment is precisely directed toward three core areas, all of which provide ideal application scenarios for Zhiguang’s cascaded high-voltage energy storage systems:
1.Distribution network upgrades remain the main investment focus. “Storage as a substitute for construction” and “storage to defer construction” have become core planning logics, with grid-forming energy storage serving as a key support for distribution network transformation.
2.Accelerated large-scale deployment of smart microgrids. On-site consumption requirements in industrial parks, remote areas, and similar scenarios are creating rigid demand for energy storage.
3.Backbone grid capacity expansion and upgrading. Ultra-high-voltage (UHV) power transmission is driving demand for large-scale, supporting energy storage facilities.
At the same time, system stability challenges arising from the high penetration of renewable energy are further reinforcing the need for energy storage.
Zhiguang’s cascaded high-voltage, large-capacity energy storage system stands out as a “core trump card” for the 15th Five-Year Plan grid investment, thanks to its technological leadership, scenario adaptability, and cost advantages:
1.In distribution networks, the system features transformer-less voltage step-up and direct high-voltage connection at 6–35 kV. With charge–discharge cycle efficiency exceeding 92% and single-unit capacity expandable to 100 MW / 200 MWh, it can rapidly alleviate distribution network capacity constraints, aligns with the “storage instead of construction” logic, and supports distributed renewable energy integration.
2.In smart microgrids, the system enables intelligent coordination of source–grid–load–storage and flexible grid-connected/islanded operation, meeting on-site consumption needs. Zhiguang has delivered an integrated source–grid–load–storage grid-forming project exceeding 1 GWh for Chuangyuan Metal in Inner Mongolia, and completed the world’s first grid-forming cascaded high-voltage energy storage black-start test in conjunction with coal-fired units—setting a replicable benchmark.
3.In UHV power transmission scenarios, its large capacity and high reliability meet supporting requirements. The successful implementation of the Guaizhou Ganhekou project in Gansu has validated its suitability for renewable power transmission applications.
On the evening of January 27, Zhiguang Electric (002169) announced that it expects full-year 2025 attributable net profit to reach RMB 110 million to RMB 160 million, representing a year-on-year increase of 133.69% to 149.01% and a return to profitability. According to the announcement, profit growth is driven by the rapid development of the energy storage business, with significant increases in orders and revenue. Operating independent energy storage power stations have delivered solid returns, substantially boosting gross profit for the reporting period and highlighting the company’s competitive edge in energy storage.
Meanwhile, Zhiguang Electric’s commercial & industrial energy storage solutions, high-voltage SVG products, and high-voltage cables are all indispensable in future grid investment and construction. Together with the cascaded high-voltage energy storage system, they create strong synergies and complementarity, further strengthening the company’s product portfolio. Supported by the policy framework of Document No. 1710, deep technological barriers, and extensive experience in large-scale project delivery, Zhiguang Electric is well positioned to capitalize on the RMB 5 trillion grid investment dividend. By tightly integrating “products, technologies, and application scenarios,” the company aims to seize the commanding heights of the energy storage sector, usher in a new golden growth cycle, and contribute to the development of China’s new-type power system and the achievement of its dual-carbon goals.
