Historic Surge in China’s Electricity Consumption: Opportunities for the Power Sector

Good news, yet another significant positive development! The electricity sector is set to benefit greatly!

On January 17, 2026, it was announced that China’s annual electricity consumption has exceeded 10 trillion kilowatt-hours, marking a historic milestone. This seemingly simple figure has far-reaching implications. Electricity serves as a crucial barometer for economic activity, a measure of industrial structure, a sign of growth momentum, and a key vehicle for energy transition. It is also a fundamental production factor and a safety baseline for the modern economy.

According to a report from the National Energy Administration on January 17, it is projected that by 2025, China’s total electricity consumption will surpass 10 trillion kilowatt-hours, reaching 10.4 trillion kilowatt-hours, which represents a 5% year-on-year increase. This figure is unprecedented for any single country globally and is more than twice the annual electricity consumption of the United States, exceeding the combined annual consumption of the European Union, Russia, India, and Japan.

This data is extraordinarily significant, with implications across three primary areas:

1. Electricity as an Economic Indicator: The growth rate of electricity consumption is closely correlated with GDP growth. Changes in consumption patterns can directly reflect the strength of industrial production, the pace of service industry expansion, and the vitality of consumer spending. A decline in electricity consumption per unit of GDP indicates improved economic growth quality.
2. Electricity as a Measure of Industrial Structure and Energy Transition: Increased electricity consumption in high-tech manufacturing, the digital economy, and charging infrastructure indicates the rise of new productive forces and the transition from old to new energy sources, while traditional high-energy-consuming industries show stable electricity usage.
3. Electricity as a Benchmark for Green Economic Transformation: An increase in the “green content” of electricity consumption signifies successful low-carbon development. As the world’s largest electricity consumer and a leader in power technology standards, China demonstrates its substantial economic scale and influence in energy governance.

Looking ahead, our electricity consumption is only expected to grow. So, where are the opportunities? Let’s explore:

1. Ultra-high Voltage Equipment: Key equipment manufacturers, including converters and transformers; Distribution Network Automation: Terminal monitoring, smart meters, and virtual power plants; Demand-side Response: Load aggregators and time-of-use pricing service providers. Potential stocks include Guodian NARI, XJ Electric, Southern Power Grid Energy Storage, and Weichuang Information.
2. Computing Infrastructure: Temperature control, uninterruptible power supplies, and electricity optimization solutions; High-tech Manufacturing: Wind and solar equipment, and new energy vehicle production; Charging Infrastructure: Charging station operations and high-voltage fast charging equipment. Potential stocks include Kehua Data, Sunshine Power, CATL, and Teradyne.
3. Large Wind and Solar Bases: Integrated operators, and leaders in modules and towers; New Energy Storage: Independent grid-side storage and long-duration storage; Export of Power Equipment: Transformers, inverters, and ultra-high voltage technology. Potential stocks include Three Gorges Energy, LONGi Green Energy, CATL, and Chint Electric.

Note: The information contained in this article is sourced from publicly available information and is for reference only. Investors should assess risks independently and make cautious decisions, as this does not constitute investment advice. All profits and losses are the responsibility of the investor.