Column: Copper’s early-year rally leaves investors unimpressed
Doctor Copper has started 2025 with a spring in his step after a year when the early bull party was followed by a prolonged hangover.
State Grid Corp. of China, the nation’s largest power network operator, plans to raise investments to a record as it seeks to keep pace with surging renewable generation.
The grid operator for roughly 80% of the nation will spend more than 650 billion yuan ($89 billion) this year, according to a report from state-run CCTV. The firm last year said it planned to spend about 600 billion yuan on capital expenses.
China — which is still heavily reliant on coal power plants — is adding wind and solar farms at an unprecedented rate to meet climate pledges and reduce the need for expensive fuel imports. All the new intermittent generation has strained the grids, and more power lines and energy-storage equipment is needed to deliver electricity where it needs to go around the clock.
Long-distance, ultra-high-voltage power lines, as well as smaller networks linking rooftop solar panels, will be the biggest beneficiaries of increased grid spending in China, analysts at China International Capital Corp. said in a research note last month. State Grid completed three new UHV lines last year, putting its total at 38, CCTV reported.
Increased spending on power infrastructure could also help boost demand for materials including copper and steel.
Read More: China leads world in energy transition, Wood Mackenzie says
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