Event: according to China Energy News, during the "14th five year plan" period, the State Grid planned to build the "24 AC and 14 DC" UHV project, involving more than 30000 kilometers of lines, 340 million KVA of transformation capacity and a total investment of 380 billion yuan. This year, the State Grid plans to start 13 UHV lines of "10 AC and 3 DC".
The national standing committee emphasizes stable investment, and UHV has the attribute of counter cyclical regulation.
On January 10, 2022, the national standing committee pointed out that the current economic operation is at the threshold of climbing over the ridge. In accordance with the requirements of the central economic work conference, we should give more prominence to stabilizing growth and firmly implement the strategy of expanding domestic demand. Deploy and accelerate the promotion of major projects identified in the outline of the 14th five year plan and special plans, and expand effective investment. As one of the seven fields of "new infrastructure", UHV infrastructure, which focuses on power grid investment, has the attribute of reverse cycle regulation. Looking back on the last UHV construction peak, the downward pressure on the economy increased in 2018. The Energy Bureau issued the notice on accelerating the planning and construction of a number of key power transmission and transformation projects, which is to approve the construction of 5 DC and 7 AC UHV projects from 2019 to 2020, so as to start the second UHV construction peak.
Under the background of building a new power system, UHV has become an important support for power grid transformation.
The 14th five year plan for national economic and social development of the people's Republic of China and the outline of long-term objectives for 2035 point out that it is necessary to build clean energy bases such as the upper and lower reaches of Jinsha River, Yalong River Basin, the upper reaches of the Yellow River and jiziwan, Hexi Corridor, Xinjiang, northern Hebei and Songliao, as well as offshore wind power bases such as Guangdong, Fujian, Zhejiang, Jiangsu and Shandong. Recently, the first batch of large-scale wind power photovoltaic bases started in an orderly manner, and the second batch of large-scale base projects began to apply. In the context of carbon peaking and carbon neutralization, strengthening grid construction, especially UHV construction, can effectively solve the problems of China's high proportion of renewable energy grid connection and large-scale allocation across provinces and regions.
The "14th five year" UHV plan of State Grid exceeded expectations and started a new round of UHV construction.
According to the 2020 social responsibility report of the State Grid, since the opening of the UHV R & D curtain, the State Grid Corporation of China has completed and put into operation the "14 AC 12 DC" UHV transmission project, the "3 DC" UHV transmission project under construction, 29 UHV transmission projects under operation, with a line length of 41000 km and a transformation (commutation) capacity of more than 440 million KVA (kw). In March 2021, the "carbon peak and carbon neutralization action plan" of the State Grid proposed that the new cross regional transmission channel mainly focuses on the transmission of clean energy. In the 14th five year plan, 7 circuits of UHVDC will be built, with a new transmission capacity of 56 million KW. In this plan, "24 AC and 14 DC" will be built during the 14th Five Year Plan period, which is significantly different from the previous plan. At present, in terms of DC UHV, Jinshang Hubei, Longdong Shandong and hamibei Chongqing projects are in pre feasibility study status; In terms of AC UHV, the expansion of Beijing east station, transmission of Huineng Changtan power plant, Wuhu station, Jinbei station and Jinzhong station have been approved, and the Zhumadian Wuhan, Nanchang Wuhan and Fuzhou Xiamen projects are pending approval. The overall reserve project is sufficient and is expected to meet the commencement demand in 2022.
Investment suggestion: UHV is not only an important starting point of new power system, but also an important choice for stable investment under the current situation. The UHV construction plan of the State Grid during the 14th five year plan has significantly exceeded expectations and is expected to drive a new round of growth in the UHV field. It is suggested to pay attention to: Nari Technology Co.Ltd(600406) , Xj Electric Co.Ltd(000400) , Beijing Sifang Automation Co.Ltd(601126) , Tbea Co.Ltd(600089) , Sieyuan Electric Co.Ltd(002028) , Jiangsu Ankura Smart Transmission Engineering Technology Co.Ltd(300617) .
Risk analysis: the implementation of policies is not as expected.
