(Yicai Global) March 12 -- State Grid Corporation of China, the world's biggest utility, plans to invest a total of CNY1.2 trillion (USD171.6 billion) on the nation's electricity network this year, Shanghai Securities News reported.

Of that, ultra high-voltage transmission projects to enhance the grid's distribution capacity will cost CNY500 billion (USD71.5 billion), according to Chairman Mao Weiming, the report said today.

China is investing heavily in new infrastructure to steady economic growth. Ultra high-voltage transmission is expected to be a bright spot for investment.

State Grid's initial spending plans reached more than CNY400 billion, which could drive social investment to more than CNY800 billion and overall investment to CNY1.2 trillion, the report cited Mao as saying. Spending on UHV projects reached CNY112.8 billion, which could bring CNY223.5 billion in social investment, with the overall amount hitting CNY500 billion.

Total planned investment in grid projects, including UHV schemes, was as high as CNY2.38 trillion during the 13th Five-Year Plan period from 2016 to 2020, the company said. That led to a CNY3 trillion outlay on power supply, boosting gross-domestic product 0.8 percentage point a year on average, according to its own calculations.

The impact of the increase in UHV investment is also reflected in the capital market. The UHV industry index rose by 42 percent from Feb. 4 to March 6, outperforming the broader market.

Editor: Peter Thomas