Key investment points
Event: on February 23, the people’s Daily published an article signed by Xin Baoan, chairman of the State Grid Corporation of China, “resolutely shoulder the responsibility of the power grid and actively promote carbon peaking and carbon neutralization”. The State Grid has put forward a number of development goals for 2023 and made every effort to serve the “double carbon”: 1) ensure power supply and improve the volume of inter provincial transmission; 2) Give play to the complementary effect of multi energy and accelerate the construction of comprehensive energy service projects; 3) Develop energy storage and improve the regulation capacity of power system.
To ensure the safe and reliable supply of electricity under the “double carbon” goal, the intelligent level of China’s power grid is the key: under the double carbon goal, China’s energy structure needs to realize the cleanness and diversification of the supply side and the electrification of the consumption side, and the change of energy structure will bring a series of problems, such as insufficient power grid capacity, mismatching of power generation and consumption, and the decline of complete stability of the power grid. In order to solve these problems, China’s power grid needs to be comprehensively transformed, and improving the level of power grid automation, informatization and intelligence has become an important part. We believe that during the 14th Five Year Plan period, the state is expected to speed up the construction of smart grid and improve the intelligent level of power grid from transmission, distribution and power consumption.
Accelerate the development of the power grid and work with all regions and industries to reduce emissions and carbon efficiently: the article proposes to deeply tap the power transmission potential of cross regional and cross provincial channels, ensure the power balance, increase the cross regional and cross provincial transmission capacity of the State Grid from the current 240 million kW to more than 370 million kW in 2030, and fully serve the construction of large-scale wind power photovoltaic bases in the Gobi desert. At the same time, focus on key areas such as industry, transportation, construction and residents’ life, and implement electric energy substitution in a steady and orderly manner. Accelerate the construction of a number of comprehensive energy service projects, and give full play to the coupling and complementary effects of different energy systems such as electricity, gas, heat, cold and hydrogen, as well as the effect of digital empowerment. We believe that comprehensive energy will become an important guarantee for the new power system, and the comprehensive energy business model is expected to be continuously explored.
Develop energy storage and vigorously promote the construction of new energy supply and consumption system: in view of the unpredictable and difficult regulation of new energy, developing energy storage and improving the regulation capacity of power system are the main driving points of current power grid construction. The State Grid said it would vigorously strengthen the construction of pumped storage power stations with mature technology, actively support the large-scale application of new energy storage, and strive to increase the installed capacity of pumped storage power stations from 26.3 million kW to 100 million KW and electrochemical energy storage from 3 million kW to 100 million KW by 2030. Energy storage has become an important part of the consumption of the new power grid. With the continuous expansion of energy storage demand, the upstream industrial chain will fully benefit.
Recommended (covered): energy Digitization: Longshine Technology Group Co.Ltd(300682) , Willfar Information Technology Co.Ltd(688100) , Beijing Forever Technology Co.Ltd(300365) ; Energy storage and supporting facilities: Shenzhen Envicool Technology Co.Ltd(002837) .
Suggestions for attention (not covered): energy Digitization: Ygsoft Inc(002063) , State Grid Information&Communication Co.Ltd(600131) , Beijing Sifang Automation Co.Ltd(601126) , Shanghai Holystar Information Technology Co.Ltd(688330) , Beijing E-Techstar Co.Ltd(300513) ; Energy storage and supporting facilities: Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) .
Risk tip: the implementation of carbon neutralization policy is less than expected, the investment of the two networks is less than expected, and the progress of energy digitization is less than expected.
