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08-202019

Analysis of the power industry market

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In 2006 the sub-transmission sales in distribution equipment industry grew 22-48%, during which the transformer rectifiers and inductors, capacitors and supporting facilities, distribution switchgear and control equipment and wire and cable grew 33.60%, 22.10%, 25.21% and 47.93% respectively; the total profit increased by 23-46%, the transformer rectifiers and inductors, capacitors and supporting facilities, distribution switchgear and control equipment and wire and cable grew 36.76%, 31.26%, 23.24%, and 45.10% respectively. As the power industry entered large scale machine set, high-power station, large power grids, ultra-high pressure, automation, promotion of information technology, it adjusted the relationship between the generation, transmission, and distribution in terms of power structure. While developing the power, it attached great importance to the construction of power grids, greatly improved the transmission grid, urban and rural electrical network, promoted the overall quality of power transmission industry. The current quality pursuit of our power transmission industry products developed towards large-capacity, high voltage, miniaturization, combination, oil-free, less pollution. At the same time, promotion of information technology, intelligence and other high-tech start being applied to the power transmission industry.

        According to State Grid and China Southern Power Grid Company "Eleventh Five-Year Plan", during this period, the State Grid Corporation will invest more than 1 trillion yuan for grid, a great increase in power grid investment compared to "Tenth Five-Year Plan"; China Southern Power Grid Company plans to invest 234.1 billion yuan, an increase of 76% compared to "Tenth Five-Year Plan" of 132.7 billion yuan. The two companies spent about 240 billion yuan on the annual power grid investment in the "Eleventh Five-Year Plan". Generally, equipment investment accounted for 40% of total investment according to the power grid investment characteristics, that is 100 billion to meet the power transmission equipment demand per year. Transmission and distribution industry has a lot of opportunities in 2007, the state power grid construction investment of "Eleventh Five-Year Plan" increased, UHVDC transmission will promote the sustainable development of the industry. Furthermore, the Olympic Power Supply Project and railway electrification will also bring new profit growth point to the industry. By 2020, China's installed capacity will reach 10 million kilowatts. China’s power transmission equipment manufacturing industry is facing a huge market demand.

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