Core Viewpoint - The article emphasizes the critical role of the distribution network in the power system, highlighting its function as the "capillary" that connects the transmission network to end users, and the expected significant investment growth in the distribution network driven by the rise of distributed photovoltaics and charging stations during the 14th Five-Year Plan period [2][3][4]. Distribution Network Overview - The distribution network is described as the key component responsible for the distribution and supply of electrical energy, connecting the transmission network to various users [6][9]. - It operates at lower voltage levels compared to the transmission network, which is characterized by high voltage and long-distance energy transport [10][9]. Investment Growth Drivers - The rapid development of distributed photovoltaics and charging stations is identified as the main driver for the growth of distribution network investments, with the current penetration rate of distributed photovoltaics at approximately 31.3%, indicating over twofold growth potential [3][28]. - The investment in the distribution network is projected to reach around 1.75 trillion yuan during the 14th Five-Year Plan, with an annual average investment of about 350 billion yuan, reflecting a growth rate of over 15% compared to the previous plan [3][48]. Equipment Update and Market Reform Opportunities - The article discusses the need for equipment updates in the distribution network to support the integration of high-capacity transformers and energy storage systems, driven by the requirements of distributed photovoltaics and high-speed charging stations [4][55]. - The market reform in the distribution network is expected to create financial service opportunities as more social capital enters the investment landscape, with banks potentially finding new clients among provincial grid companies [4][54]. Challenges in Integration - The article highlights the challenges faced by the traditional distribution network in accommodating the rapid growth of distributed photovoltaics, including mismatches in construction pace and existing equipment limitations [19][20]. - The integration of charging stations presents additional challenges, such as spatial imbalances and technological gaps, necessitating upgrades to the distribution network to handle increased load demands [33][35]. Policy and Regulatory Framework - The article outlines the recent policy initiatives aimed at enhancing the quality and capacity of the distribution network, including guidelines for integrating distributed energy sources and improving infrastructure [49][48]. - It notes that the government has set ambitious targets for the distribution network, including the ability to accommodate 500 million kilowatts of distributed renewable energy and 12 million charging stations by 2025 [48][47]. Financial Services and Investment Landscape - The article suggests that the financial services sector should adapt to the evolving landscape of distribution network investments, with opportunities arising from equipment updates and market reforms [54][69]. - It emphasizes the importance of developing comprehensive energy services to ensure the economic viability of new investments in the distribution network [79][69].