During the "Twelfth Five-Year Plan", electrical equipment manufacturers reunited with the feast

On January 5, the executive meeting of the State Council decided to implement a new round of upgrading and upgrading of rural power grids. During the “Twelfth Five-Year Plan” period, the nationwide rural power grid will be generally reconstructed, and a new type of rural power grid that is safe, reliable, energy-saving, environmentally-friendly, technologically advanced, and standardized in management will be basically built.

At the same time, the State Grid Corporation of China revealed that in the next five years, it is planned to build about 60 AC and DC substations (converter) stations with a capacity of 420 million kVA (kW) and a line of more than 40,000 kilometers. Huge investment in equipment is expected to stimulate the development of the local electrical electrical equipment industry.

Do double benefits are a feast for power equipment manufacturers?

The transformation of rural power grids has driven the equipment market. “The implementation of rural power grid transformation will undoubtedly bring great benefits to the power equipment industry,” an industry source told reporters. “This time, the rural power grid transformation has strong pertinence, which is mainly the upgrading and replacement of traditional power grid equipment. Low-end transmission and distribution equipment manufacturers are the main beneficiaries of this rural network upgrade."

At the national agricultural network reform and upgrading work conference held in July 2010, Zhang Guobao, director of the National Energy Administration, revealed that the new round of agricultural network upgrading and reconstruction for a period of three years is expected to have an investment scale of no less than 200 billion yuan. According to Huang Shonghong, an analyst at Essence Securities, the rural grid reforms 200 billion yuan in investment, 60% - 65% of investment is calculated for equipment, and 120-130 billion yuan will be used to purchase power transmission and transformation equipment, including transformers, switches, wires, and cables. , towers, etc. Due to the wide investment in rural power grids and the low voltage level, which is concentrated in 110kV and below, the primary equipment companies of power equipment generally benefit.

Kaiyuan Equipment said on the interactive platform for investor relations of listed companies of the Shenzhen Stock Exchange that in the new round of upgrading and upgrading of rural power grids, low-voltage power equipment, including transformers, switches, wire and cable, and distribution automation equipment, will usher in a substantial expansion of the market. Qiyuan equipment for the production of transformer-specific equipment will usher in certain market opportunities.

However, the relevant person in charge of XJ Electric stated that the main purpose of rural power grid reconstruction is to solve the problem of transmission capacity, and the coverage is mainly concentrated in the transformation of low-voltage power grids. The upgrading of such power grids requires less transmission and distribution equipment. The impact on equipment manufacturers is not the same.

According to Lu Xiaobing, a researcher at Dongguan Securities, the distribution transformer is basically at the end of the power system and is widely used in rural power grid systems. Due to the fact that the seasonal load in rural power grids is mostly at the same time, full young or no-load operation takes a long time. The loss of the electric transformer accounts for about 60%-70% of the loss of the rural power grid, and the loss of the entire distribution network basically accounts for 70% of the loss of the entire network, which is the main part of the loss of the entire power grid. Therefore, the reconstruction of the rural power grid is upgraded. Energy-saving transformers are bound to be hot.

UHV Smart Grid Drives High-end Equipment Datong Securities Investment Consultant Fu Yongxuan believes that China's power grid investment has gradually exhibited the characteristics of “big two, small middle”, that is, the UHV investment and rural grid and urban distribution network investment below 110KV are two “ big head. The transformation of rural power grids is mainly the upgrading and replacement of traditional power grid equipment. The pull on the equipment industry is mainly reflected in the low-end, and UHV construction has a direct impetus to the development of high-end power equipment in China.

The industry expects that the high-end grid investment during the 12th Five-Year Plan will reach 750 billion yuan, 2.5 times that of the “Eleventh Five-Year Plan”. The total power grid investment in the country will reach 2.5 trillion yuan, a substantial increase over the "Eleventh Five-Year Plan". The increase will come mainly from UHV construction investment.

According to analysis, grid network construction is the core theme of the “Twelfth Five-Year Plan” grid investment, and it is also the most closely linked with the major themes of energy optimization and energy structure adjustment in grid construction. In the next five years, transmission line investment, transmission cables, towers, insulators account for more than 50%.

According to public information, transformers, high-voltage reactors, switches (including grounding switches) and other equipment have been used in competitive negotiation procurement in UHV AC projects that have already been completed; other UHV equipment, such as 1000 kV lightning arresters and post insulators , grounding switch and control protection equipment, using invitation to tender.

Allegedly, the State Grid plan, in the equipment procurement issues, as long as the domestic companies have the ability to produce, all the domestic procurement; domestic companies do not have the production conditions, the domestic manufacturers won the bid, foreign manufacturers as domestic manufacturers of subcontractors Delivery.

A simple example was given to people in the industry who promoted the technical upgrading of domestic equipment companies. The equipment produced by ABB has stable performance, and basically no failure in the past 10 years. Domestically produced equipment may only last for 5 years and it needs constant repairs. For domestic equipment manufacturers, to successfully achieve the successful bid, in order to share the feast brought about by the good, but also need to work hard to upgrade the key technical level.

Some experts told reporters that domestic companies’ technical reserves are still insufficient. Taking UHV DC equipment as an example, although some companies in China have independently manufactured DC equipment, there is still room for improvement in product stability. The more serious problem is that due to the lack of basic research, production processes, and production capacity, some of the equipment's raw materials and components still need to be imported, resulting in expensive domestic equipment. For example, the core components of UHV transformer products, most of the oriented silicon steel sheets used in them need to be imported from abroad.

Therefore, people in the industry believe that domestic companies must strengthen the close integration of scientific research and production, technology and economy, accelerate the absorption of imported technology, increase technology reserves, accelerate the commercialization and industrialization of scientific and technological achievements, and bring the overall technological level of power equipment to or near International advanced level.

However, the industry also has a consensus: China's power equipment manufacturing industry ushered in an unprecedented rapid development trend, the industry has significantly improved the level of technology. The high-end development path for the transformation of the domestic power equipment manufacturing industry has begun to appear. On the one hand, UHV power grids and smart grids will be used as the power source to promote the adjustment and optimization of the organizational structure of the power equipment manufacturing industry, and to greatly increase the technological level of the entire industry, so that China’s future will be from high pressure, ultra high pressure, to UHV. Throughout the construction of the entire power system, we will further get rid of dependence on foreign major equipment technologies and gain a dominant position. On the other hand, the domestic power equipment industry has also consciously turned to “cleanliness”, strengthened energy conservation and emission reductions, and promoted the upgrading of products to the high end.