The State Grid Corp of China (SGCC) planned to increase investment in power grid construction by nearly 20% this year, the company announced recently, a move that may benefit grid equipment enterprises.

world's largest state-owned utility company may increase fixed asset investment by 11.92% year on year to 403.5 billion yuan ($60.10 billion) in 2014. Of this, 381.5 billion yuan will be injected into constructing electricity power grids, nearly 20% higher than last year's 318.2 billion yuan.

Although the number of projects which will get final approval will be less than it planned, it is likely that the extra-high voltage projects will get approval thanks to the government's determination to cut air pollution and readjust its energy structure, insiders said.

The SGCC slowed the construction and bidding projects for building power grids in the second half of 2013 as a result of weak demand and slower economic growth.