Arrival of distant power: The impact of ultra-high voltage transmission projects on energy structure in China

Shenggang Ren, Ruizhi Bao and Zhengye Gao

Energy, 2025, vol. 316, issue C

Abstract: Ultra-high voltage (UHV) transmission technology is critical for alleviating China's reverse distribution between energy resources and power loads. We take UHV transmission infrastructure as a quasi-natural experiment and adopt the staggered difference-in-differences method to examine the effect of UHV transmission projects on China's energy structure. Our results show that UHV transmission projects have significantly reduced thermal power generation and increase renewable energy production and the share of end-use electricity. The mechanism analysis shows that the opening of UHV makes long-distance power transmission possible, transforming the pattern of power supply from “coal transport on the ground” to “electricity transmission in the sky”. The arrival of distant power prompts manufacturing firms to change their energy consumption behavior and shift towards electrified production, especially for firms with larger power shortages. Our study not only highlights the importance of cross-regional energy dispatch but also provides essential inspiration for optimizing the renewable energy development strategy.

Keywords: Transregional power transmission; Ultra-high voltage infrastructure; Energy structure; Renewable energy development (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:316:y:2025:i:c:s0360544225001690

DOI: 10.1016/j.energy.2025.134527

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