China's August electricity consumption tops 1 trillion kWh again, tertiary industry leads with 5.1% growth

Electricity consumption is widely regarded by industry experts as a highly accurate "barometer" and "wind vane" for economic performance.

On September 20, the National Energy Administration (NEA) released data showing that in August 2026, total electricity consumption across society exceeded one trillion kilowatt-hours (kWh) once again, reaching 1,033.2 billion kWh, a year-on-year increase of 1.7%. Electricity load also hit a record high.

Drivers of Steady Growth

Lin Boqiang, Dean of the China Institute for Energy Policy Studies at Xiamen University, told China Business News that electricity consumption growth is being steadily driven by the power sector, new energy vehicles, artificial intelligence, and the digital economy.

Guo Yiming, Investment Advisory Director at Jufu Investment, noted that electricity consumption in high-end manufacturing, the digital economy, and new types of consumption continues to grow, while energy-intensive industries remain relatively weak. This indicates that the momentum of economic growth is shifting from traditional industries to new tracks, with the curve of industrial upgrading becoming increasingly clear.

Consumption Breakdown by Sector

According to the NEA data:

• Primary industry: 16.9 billion kWh, up 2.7% year-on-year
• Secondary industry: 612.4 billion kWh, up 2.4% year-on-year
• Tertiary industry: 215.5 billion kWh, up 5.1% year-on-year
• Residential living: 188.3 billion kWh, down 4.0% year-on-year

The NEA attributed the decline in residential electricity consumption to an increase in typhoons and heavy rainfall in August 2026 compared to the same period in 2025, which reduced the need for air conditioning.

Production Sector Remains Core Stabilizer

Wu Liqiang, Assistant Director of the Statistics and Digital Intelligence Department at the China Electricity Council (CEC), stated that in August, the combined increase in electricity consumption from the secondary and tertiary industries not only fully covered the gap created by the decline in residential living consumption but also supported a net growth of 17.63 billion kWh across society. This suggests that the absolute scale of the production sector is still expanding and remains the core force stabilizing the overall economy.

Wu further pointed out that the year-on-year increases in electricity consumption from the secondary and tertiary industries are the main engines driving overall growth. Within the manufacturing sector, a pattern of "new industries rising and old industries declining" continues. Electricity consumption in high-tech and equipment manufacturing maintained relatively fast growth, while new business formats such as battery charging/swapping and internet data services led in consumption growth rates.

High-Tech Manufacturing and New Business Formats

NEA data shows that in August, electricity consumption in high-tech and equipment manufacturing maintained a rapid growth trend, reaching 122.2 billion kWh, up 7.2% year-on-year. Notable sub-sectors include:

• Computer, communications, and automotive equipment manufacturing: 7.6% growth (with new energy vehicle manufacturing up 22.2%)
• General equipment and specialized equipment manufacturing: also showing strong growth

Implications for Industrial Evolution

Guo Yiming commented that these figures illustrate the direction of industrial evolution: electricity consumption for new energy vehicle manufacturing grew by 22.2%, and the battery charging/swapping service sector grew by over 50%. This indicates a continuous increase in the penetration rate of new energy vehicles and the long-term expansion of charging infrastructure and AI computing power.

The Future of Computing Power and Electricity

As the saying goes, "The end of computing power is electricity." The CEC predicts that during the "15th Five-Year Plan" period (2026–2030), national computing power-related electricity consumption will increase by an average of over 100 billion kWh annually, reaching approximately 800 billion kWh by 2030, accounting for about 6% of total societal electricity consumption.

Lin Boqiang also noted that the development of computing power must rely on electricity. One of the prominent constraints facing the United States in developing computing power is insufficient electricity supply. In contrast, China possesses one of the world's largest power systems, which provides strong support for the long-term development of its AI industry. He expects that in the future, new energy manufacturing and AI data centers will continue to drive electricity demand.

(Source: China Business News)