China Business Intelligence Network News: Recently, the State Grid 2022 annual work conference revealed that in 2022, in terms of power grid investment, the State Grid plans to invest 501.2 billion yuan, breaking through 500 billion yuan for the first time, a record high. Previously, China Energy News said that the country will launch a new round of UHV construction on a large scale in 2022, and the planned projects are expected to be fully approved. During the "14th Five-Year Plan" period, the State Grid plans to build the UHV project "24 to 14 straight", and the UHV field will usher in an accelerated period.
First, the overview of UHV
(1) The difference between UHVDC and AC transmission
Source: Compiled by China Commercial Industry Research Institute
(2) UHV development process
Image source: China Commercial Industry Research Institute
Second, the development environment of UHV industry
(1) Relevant national policies support industrial development
The development of the UHV industry is conducive to optimizing the layout of the mainland power grid and power supply, promoting the coordinated development of the power industry as a whole and the regional economy, and effectively realizing the allocation of energy and resources. Therefore, the mainland has issued a number of policies to promote the sustainable development of the UHV industry. In May 2021, the National Energy Administration issued the Notice on Supervising the Investment Effectiveness of Typical Power Grid Projects such as Jiuhu UHVDC, which is mainly based on whether key indicators such as the actual operation of the project, the reliability after the project is put into operation, and whether the transmission loss rate and other key indicators have reached the expected level, and the consistency of the technical plan with expectations.
(2) Steady and progressive economic development
The data shows that in the first three quarters of 2021, the mainland's GDP was 823131 billion yuan, calculated at constant prices, an increase of 9.8% year-on-year, and an average growth of 5.2% in two years. By industry, the added value of the primary industry was 5,143 billion yuan, an increase of 7.4% year-on-year; the added value of the secondary industry was 3,209.4 billion yuan, an increase of 10.6% year-on-year; the added value of the tertiary industry was 450761 billion yuan, an increase of 9.5% year-on-year. According to preliminary calculations, China's GDP in 2021 will 1143670 billion yuan, an increase of 8.1% over the previous year and an average growth of 5.1% in two years.
Data source: Bureau of Statistics, China Commercial Industry Research Institute collation
(3) Investment in fixed assets stimulates electricity consumption
From January to December 2021, the national fixed asset investment (excluding rural households) 544547 billion yuan, an increase of 4.9% over the previous year; an increase of 8.0% over january-December 2019, an average increase of 3.9% in two years. Among them, private fixed asset investment 307659 billion yuan, an increase of 7.0% over the previous year. On a month-on-month basis, fixed asset investment (excluding rural households) increased by 0.22% in December.
(4) The electricity consumption of the whole society has increased year by year
In 2021, the electricity consumption of the whole society was 8,312.8 billion kWh, an increase of 10.3% year-on-year, an increase of 14.7% over the same period in 2019, and an average growth of 7.1% in two years. By industry, the primary industry electricity consumption of 102.3 billion kWh, an increase of 16.4% year-on-year, accounting for 1.2% of the total social electricity consumption; the secondary industry electricity consumption of 5613.1 billion kWh, an increase of 9.1% year-on-year, accounting for 67.5% of the total social electricity consumption; the tertiary industry electricity consumption of 1423.1 billion kWh, an increase of 17.8% year-on-year, accounting for 17.1% of the total social electricity consumption; urban and rural residents 1174.3 billion kWh, an increase of 7.3%. It accounts for 14.1% of the total electricity consumption of the whole society.
Data source: National Energy Administration, China Commercial Industry Research Institute collation
(5) Internet of Things technology provides technical support for the industry
In recent stages, the State Grid Co., Ltd. has put forward the strategic goal of "building a full-service ubiquitous power Internet of Things" to create an energy Internet that integrates energy flow, business flow and data flow. With the development of Internet of Things technology, the application of Internet of Things in power systems has received more and more attention.
On the basis of continuing to build and operate a strong smart grid with UHV AC and UHVDC power grids as the grid and the coordinated development of power grids at all levels, we will integrate the latest Internet of Things, artificial intelligence, big data storage and analysis, cloud computing, and mobile Internet technologies to improve the level of informatization, intelligence, and intensification of the State Grid system, so that the energy and resource allocation capabilities of the State Grid will continue to improve, reduce wind and light curtailment, and improve energy utilization efficiency and quality。
At present, the State Grid has carried out pilot projects in the construction of ubiquitous power Internet of Things in UHV 5G applications, big data applications, intelligent terminals, State Grid cloud, IoT management platform, report optimization, etc., and various applications are gradually landing. Starting from the characteristics and requirements of UHV substation equipment operation and maintenance, the application prospects of IoT technology in UHV equipment status detection, fault intelligent diagnosis and analysis processing, operation and maintenance management are analyzed, so as to provide a reference for the construction of power Internet of Things in substations.
Third, the current situation of uh-high voltage market
(1) The length of UHV engineering lines
Benefiting from infrastructure stimulation and environmental protection demand, UHV project construction has accelerated, and the cumulative length of UHV projects has increased rapidly from 16,937 kilometers in 2016 to 35,868 kilometers in 2020, with a compound annual growth rate of 20.63%. After experiencing a slowdown in the pace of investment in 2019, the Chinese government will increase its investment in UHV in 2020 due to the impact of the epidemic and economic pressure on China's economy, and UHV investment will be fully restarted on a large scale, ushering in a new round of construction climax again.
Data source: State Grid, China Commercial Industry Research Institute collation
(2) UHV power conversion
According to the statistics of the State Grid, the cumulative substation capacity of UHV in China has increased steadily from 2016 to 2020, of which the growth rate of UHV substation has expanded significantly in 2019. The data shows that in 2020, the cumulative substation capacity of China's UHV will reach 412.67 million kilowatts. The China Commercial Industry Research Institute predicts that the cumulative substation capacity of China's UHV will reach 452.87 million kilowatts in 2021.
(3) UHV power transmission
According to the statistics of the State Grid, from 2016 to 2020, the State Grid UHV inter-regional inter-provincial transmission of electricity gradually increased, the growth rate has increased, in 2020 the State Grid UHV inter-regional inter-provincial transmission of electricity reached 2076.413 billion kWh, it is expected that the State Grid UHV inter-regional inter-provincial transmission of electricity reached 2441.541 billion kWh.
(4) The scale of UHV investment
The data shows that in 2020, the total investment scale driven by the mainland UHV industry and related supporting links in the upstream and downstream of the industrial chain exceeded 300 billion yuan, of which the investment scale of the UHV industry was nearly 100 billion yuan, driving social investment of more than 200 billion yuan. By 2022, the total investment scale driven by China's UHV industry and related supporting links in the upstream and downstream of its industrial chain will reach 414 billion yuan; by 2025, the overall investment scale of UHV industry and its driven industry will reach 587 billion yuan.
Data source: Compiled by China Commercial Industry Research Institute
(5) UHV project summary
Fourth, UHV key enterprise analysis
(1) State Grid
1. Business situation
State Grid Co., Ltd. was established on December 29, 2002, is a state-owned company directly managed by the central government, with investment in the construction and operation of power grid as the core business, is related to the national energy security and the lifeline of the national economy of the extra-large state-owned key backbone enterprises. The operating area covers 26 provinces (autonomous regions and municipalities directly under the central government) on the mainland, with a power supply area accounting for 88% of the national land area and a power supply population of more than 1.1 billion. In 2021, it ranked 2nd in the Fortune Global 500. In 2020, the operating income of the State Grid reached 2,660.03 billion yuan, and the profit was 59.1 billion yuan.
2. Business situation
The State Grid operation area covers 26 provinces (autonomous regions and municipalities directly under the central government) on the mainland, with the power supply range accounting for 88% of the national land area and the power supply population exceeding 1.1 billion. In the past 20 years, the State Grid has continued to create the longest safety record of the world's super-large power grid, built a number of UHV transmission projects, and become the world's strongest transmission capacity, the largest new energy grid-connected power grid, and the number of patents has ranked first among central enterprises for 10 consecutive years.
The backbone energy grid of 9 countries and regions, including the Philippines, Brazil, Portugal, Australia, Italy, Greece, Oman, Chile and Hong Kong, China, has been awarded the A grade of performance appraisal by the State-owned Assets Supervision and Administration Commission of the State Council for 17 consecutive years, and the national sovereign credit rating of the three international rating agencies of Standard & Poor's, Moody's and Fitch for 9 consecutive years.
Up to now, the State Grid has completed and put into operation 26 UHV projects of "14 exchanges and 12 straights", and approved and is under construction 5 UHV projects of "two exchanges and three straights". The length of the 31 UHV transmission projects under construction in operation has reached 41,000 kilometers, and the substation (converter) capacity has exceeded 450 million kVA (kW).
As of 2020, UHV has accumulated more than 2.1 trillion kWh of electricity, and the capacity of power grid resource allocation has been continuously improved, which has played an important role in ensuring power supply, promoting the development of clean energy, improving the environment, and improving the level of grid security.
Image source: State Grid, China Commercial Industry Research Institute collation
(2) China Southern Power Grid
China Southern Power Grid Corporation is an important state-owned backbone enterprise managed by the central government, and the State-owned Assets Supervision and Administration Commission of the State Council performs the duties of investor. Responsible for investment, construction and operation management of the southern regional power grid, participate in the investment, construction and operation of related cross-regional power transmission and transformation and networking projects, and provide power supply service guarantee for the five provinces and regions of Guangdong, Guangxi, Yunnan, Guizhou, Hainan and Hong Kong and Macao. In January 2021, it was listed on the main board of the Shenzhen Stock Exchange A-share market with the stock code (003035). From January to September 2021, the total operating income of China Southern Grid Energy was 1.81 billion yuan, and the net profit was 343 million yuan.
China Southern Power Grid is responsible for investing, constructing and operating the southern regional power grid, participating in the investment, construction and operation of related cross-regional power transmission and transformation and interconnection projects, and providing power supply service guarantee for the five provinces and regions of Guangdong, Guangxi, Yunnan, Guizhou, Hainan and Hong Kong and Macao.
For more information, please refer to the "Research Report on market prospects and investment opportunities in China's UHV Industry" released by the China Commercial Industry Research Institute, and the China Commercial Industry Research Institute also provides industrial big data, industrial intelligence, industrial research reports, industrial planning, park planning, 14th Five-Year Plan, industrial investment attraction and other services.