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On August 6, the National Development and Reform Commission (NDRC), the National Energy Administration (NEA), and the National Data Bureau jointly issued the "Action Plan for Accelerating the Construction of a New Power System (2024-2027)" (hereinafter referred to as the "Action Plan"), proposing to focus on nine special actions between 2024 and 2027 to effectively promote the construction of a new power system.

The "Action Plan" outlines specific requirements across nine areas: ensuring power system stability, large-scale high-proportion renewable energy transmission, high-quality development of distribution networks, building a smart dispatch system, enhancing renewable energy system-friendly performance, upgrading the next generation of coal power, optimizing power system regulation capabilities, expanding the electric vehicle charging infrastructure network, and enhancing demand-side coordination.

The "Action Plan" stresses the need to focus on critical areas for breakthroughs in the near-term construction of a new power system, exploring representative directions to address major challenges with "small cuts" and improving the grid's ability to accept, allocate, and regulate clean energy.

The new power system is a key vehicle to achieve the "dual-carbon" goals, a long-term strategy for ensuring national energy security, and an effective response to the challenges of power transformation. Building a new power system dominated by renewable energy requires increased investment throughout the entire energy chain — from generation to transmission and usage.

"Small Cuts" to Solve "Big Problems"

The grid's ability to accept, allocate, and regulate clean energy needs improvement. Currently, the construction of a new power system faces multiple constraints, such as the rapid development of new business models across power generation, transmission, distribution, and storage; the explosion in distributed renewable energy integration; and difficulties in peak regulation. These challenges require cooperation from government, society, and enterprises across all sectors.

Since March 15, 2021, the Central Financial and Economic Affairs Commission has called for the construction of a new power system. Experts emphasize that accelerating the development of renewable energy is crucial for the new power system. Han Fang, Deputy Director of the Planning and Development Department of the China Electric Power Enterprise Federation, pointed out that addressing renewable energy issues requires more investment in R&D, promoting technological innovation, improving equipment performance, reducing costs, and advancing energy storage technology to enhance renewable energy stability. Furthermore, he emphasized establishing renewable energy quota systems and green certificate trading mechanisms to reflect the scientific value of renewable energy and improve its economic feasibility.

The new power system faces challenges such as increasing renewable energy consumption pressure, difficulties in ensuring power supply, and rising costs. Zhang Jinming, Deputy General Manager of the China South-to-North Water Diversion Group's New Energy Investment Co., Ltd., recommended focusing on the industrial development foundation, current status, and planning of major renewable energy provinces, and integrating renewable energy base planning with other local industries. This will involve designing more application scenarios tailored to local conditions and providing better solutions for local governments, energy enterprises, and industries to promote local consumption of renewable energy.

The Cable Market: Growth in Quantity and Quality

Cables play an essential role in carrying electricity and are crucial in the construction of the new power system. In the power generation sector, clean energy, offshore wind power, and photovoltaic power will continue to develop, and the demand for medium and high-voltage submarine cables, ultra-high-voltage land cables, and cables for photovoltaics will grow. In the transmission sector, with the trend of enhancing renewable energy absorption and improving grid security, there is potential for higher-reliability, lower-loss ultra-high-voltage cables, superconducting cable systems, and gas-insulated lines (GIL). In the distribution sector, to address challenges like aging lines, reliability, and increased load density, customized medium and low-voltage cable solutions will become more common.

On the usage side, sectors such as electrified high-speed rail, urban rail transit, electric vehicles, large industrial and commercial projects, data centers, and shore power for ships will drive the growth of medium and low-voltage cables.

Grid companies at all levels are focusing on building a new power system based on renewable energy to achieve the "dual-carbon" goals. To support green development, various cables and solutions such as high-conductivity steel-core aluminum strands and energy-saving conductors will see increased usage. While overhead lines are the preferred solution for high-voltage transmission over long distances, the growing demand for underground power cables in urban areas due to land and environmental concerns will lead to the renovation of overhead lines into underground cables.

Additionally, the rapid growth of offshore wind power will drive demand for high-voltage subsea cables, creating an entire subsea cable industry chain. The shift to a new power system also requires upgrades in cable and accessory manufacturing capabilities, including automation and digitization to improve product quality and market competitiveness.