China's high-voltage power grid construction can promote the development of new energy driven power generation capacity. Affected by global warming, the continuous consumption of non renewable fossil energy and other factors, the global energy consumption structure is accelerating the transformation to low-carbon. China announced the "double carbon goal" in 2020, that is, to achieve carbon peak in 2030 and carbon neutralization in 2060. In the future, China will form a power generation structure dominated by renewable energy. The development of UHV industry is conducive to optimizing the layout of China's power grid and power supply, promoting the coordinated development of the overall power industry and regional economy, and effectively realizing the allocation of energy and resources. Therefore, from 2017 to 2022, China issued a number of policies to promote the development of UHV industry.
The investment in the national power grid planning during the 14th five year plan has increased greatly, and there is great room for the development of flexible DC transmission technology. According to the above planning, the cumulative investment in the power grid planning of the State Grid and China Southern Power Grid during the 14th five year plan will exceed 2.9 trillion yuan. Superimposed on the investment planning of China's local power grid companies, the total investment in the national power grid during the 14th Five Year Plan period is expected to be nearly 3 trillion yuan, which will be significantly higher than the total investment in the national power grid during the 13th Five Year Plan period of 2.57 trillion yuan. The huge investment scale will bring great development opportunities to China smart grid industry chain corporation. UHV has the characteristics of large capacity, long-distance transmission and low loss. The development of UHV can greatly improve the transmission capacity of China's power grid. As a new generation of DC transmission technology, flexible DC transmission technology is the transmission technology with the highest controllability and the best adaptability in the world. Under the background of large-scale renewable energy grid connection, it has great development space in the future.
With the acceleration of UHV construction, the demand for high-voltage transmission and distribution equipment is growing. According to the State Grid, during the "14th five year plan" period, the State Grid plans to build the "24 AC and 14 DC" UHV project, involving more than 30000 kilometers of lines, 340 million KVA transformation capacity, with a total investment of 380 billion yuan, a significant increase of 35.7% compared with 280 billion yuan of UHV investment in the 13th five year plan. UHV will usher in a new round of accelerated construction period. In 2022, the State Grid plans to start 13 UHV lines of "10 AC and 3 DC". UHV power transmission and transformation equipment can effectively reduce loss and improve efficiency. The use of UHV AC / DC transmission technology in the field of ultra long distance and high-capacity transmission can greatly improve transmission efficiency and reduce transmission loss, which is of great significance for high-capacity and long-distance power transmission. During the 14th Five Year Plan period, with the construction of UHV, the growth space of the industry will be greatly opened.
Investment suggestion: the "14th five year plan" for modern energy system proposes to strengthen the planning and construction of a new energy supply and consumption system based on large-scale wind and solar power bases, supported by clean, efficient, advanced and energy-saving coal power around them, and supported by stable, safe and reliable UHV power transmission and transformation lines. And build an intelligent and efficient dispatching operation system. Driven by the national top-level design and the investment and construction of the two power grid companies, a new round of construction of UHV and smart grid will be ushered in during the 14th Five Year Plan period. It is recommended to pay attention to Nari Technology Co.Ltd(600406) ( Nari Technology Co.Ltd(600406) ), Tbea Co.Ltd(600089) ( Tbea Co.Ltd(600089) ), Xj Electric Co.Ltd(000400) ( Xj Electric Co.Ltd(000400) ) and Changgao Electric Group Co.Ltd(002452) ( Changgao Electric Group Co.Ltd(002452) ).
Risk tip: the national economic growth rate is lower than expected; The implementation of the policy in the short term is less than expected; The development of intelligent power grid is less than expected; The investment and construction progress of the State Grid and China Southern Power Grid was less than expected.
