China Orders Mandatory Resolution of "Voltage Sags" by 2028

A three-year action plan to eliminate hidden production losses

The "Hidden" Power Problem

On April 16, 2026, China's National Energy Administration (NEA) and National Development and Reform Commission (NDRC) jointly issued a mandatory action plan requiring the complete resolution of voltage sag issues — commonly known as "flickering" or "momentary power interruptions" — by the end of 2028.

The announcement gives the industry a clear three-year deadline to implement comprehensive solutions.

99.9% Reliability Is Not Enough

For decades, China's power system has relied on "average power supply reliability" (typically over 99.9%) as its core performance indicator. However, this metric only tracks complete power outages — it does NOT record voltage sags that last just tens of milliseconds.

For industries like semiconductor manufacturing, biopharmaceuticals, and precision machining, a single voltage sag lasting just 40–80 milliseconds can:

• ❌ Shut down entire production lines

• ❌ Scrap work-in-progress materials worth millions

• ❌ Damage sensitive production equipment

The fundamental problem is not that the grid is "not trying" — it is that the performance evaluation system has been pointing at the wrong target. When "good power quality" only measures blackouts, grid operators have no incentive to address voltage sags.

Why Has This Problem Persisted?

The core issue: misaligned costs and benefits.

• Grid operators bear the investment cost of improving power quality (infrastructure upgrades, intelligent equipment)

• Manufacturing customers capture the benefits (avoided production losses, equipment protection)

Without regulatory intervention, grid operators lack economic incentives to invest in voltage sag prevention. Meanwhile, manufacturers are caught in a dilemma — they cannot easily force grid upgrades, yet investing in on-site protection equipment is a significant expense.

Many companies have simply "endured" the hidden losses, treating them as an invisible operational cost.

The NEA's action plan breaks this deadlock through clear dual accountability:

From "Reactive Repair" to "Proactive Prevention"

The most significant signal from the document is the shift from "passive emergency repair" to "active prevention".

Traditional power systems operate on a "respond after failure" logic — when power fails, restore it as quickly as possible. But for equipment sensitive to millisecond-level disturbances, the loss has already occurred by the time repair begins.

True "active prevention" means:

• Predicting and isolating voltage disturbances before they affect loads

• Completing load switching within milliseconds so production lines never perceive a fluctuation

• Achieving "zero disturbance, zero loss, zero impact"

The plan specifically calls for creating "high-reliability demonstration zones" in key industrial regions, where power supply reliability must reach 99.999% (downtime less than 5 minutes per year) with fault recovery times in milliseconds.

Once proven, these zones could redefine site selection criteria for high-end manufacturing — transforming power quality from a basic utility service into a core competitive differentiator.

The 2028 Deadline: What It Takes

The three-year timeline is ambitious but tight:

The greatest uncertainty is not technical feasibility — it is execution. Success depends on:

• Local governments including power quality in grid operator performance evaluations

• Manufacturers recognizing voltage sag losses as sufficiently severe to justify investment

• The establishment of an effective cross-functional coordination body

What This Means for Your Business

If your facility experiences:

• Unexplained production stoppages without power outages

• Sensitive equipment tripping for no apparent reason

• Scrap rates that spike during summer thunderstorms or grid peak periods

Voltage sags may be your hidden cost driver.

The NEA's deadline means two things:

1. Grid operators will accelerate voltage sag mitigation at the source

2. Manufacturers will increasingly need on-site protection devices (DVRs, LVRT systems, dynamic voltage restorers) to meet the 2028 compliance expectations

Summary

China has moved from an era of "no power shortage" to one demanding "quality power" — and quality power is now recognized as an essential foundation for high-end manufacturing competitiveness.

The 2028 deadline is irreversible. The question is not whether the industry will respond, but who will be ready.

Source: National Energy Administration (NEA) / National Development and Reform Commission (NDRC) Joint Announcement, April 16, 2026