Switch, Transformer Enterprises Submittance UHV 600 Billion Investment

Leading Speech: By 2020, China’s investment in UHV construction will reach around 600 billion yuan. Among them, the demand for transformers and switches will be the largest. Transformer listed companies Tianwei Baobian, TBEA, and China Xidian will account for approximately 7% of the total investment. Switching listed companies Pinggao Electric and China West will account for approximately 15% of the total investment. , DC converter valve company XJ Electric and China Xidian benefit the most. Among the equipment suppliers, the three major high-voltage switchers and the three major transformer equipment suppliers will be the main beneficiaries. There are more than 100 electric equipment enterprises in the country that participated in the development and supply of UHV equipment. Among them, transformers are independently developed by TBEA, Shenyang Transformer Group and Tianwei Baochang; reactors are independently developed by Xi'an Transformer Company and Hengyang Transformer Company. Circuit breakers were jointly developed and shared by Pinggao Electric, New Northeast Electric, and Xi'an High-voltage Electrical Co., Ltd. with foreign companies. The protection and control system was developed by Nanrui Insurance, Xuji Group, and Sifang Insurance.
Recently, the "12th Five-Year" UHV investment plan of the State Grid has been issued.
State Grid announced for the first time on August 12, 2010. By 2015, it will build a UHV power grid in North China, East China and Central China (“Sanhua”), forming a “three vertical and three horizontal and one ring network”.
It is understood that in the next five years, the UHV investment amount is expected to reach 270 billion yuan. This is more than a 13-fold increase over the 20 billion investment during the "Eleventh Five-Year" period.
Some analysts pointed out that China’s power grid will enter the era of UHV. This is undoubtedly an exciting news for power generation equipment companies. So, in this UHV investment feast, the power generation equipment company can get a few cups of it?
Power Grid Construction Enters UHV Era
State Grid also announced on August 12 that the 1000 kV Jindongnan-Nanyang-Jingmen UHV AC pilot demonstration project with the highest operating voltage in the world has passed the national acceptance test, which indicates that UHV is no longer a “test” and “demonstration”. "The phase of the follow-up project approval and construction process is expected to accelerate.
Before this, China’s UHV power grid construction is also gradually advancing.
January 16, 2009, China's first UHV demonstration project - southeastern Shanxi - Jingmen 1000 kV UHV AC transmission demonstration project officially put into operation, has been successfully operated for 1 year and 7 months.
In addition, on July 8, 2010, the Xiangjiaba-Shanghai ±800 kV UHV DC transmission demonstration project was successfully put into operation. This is the DC power transmission project with the highest voltage level, longest transmission distance, and largest capacity in the world currently planned and constructed.
According to calculations by the State Grid, by 2020, Shanxi, Shaanxi, Inner Mongolia, and other western coal and electricity bases plan to send 234 million kilowatts of coal to the central and eastern regions, of which 197 million kilowatts will be sent through the UHV AC-DC power grid.
According to the plan of the State Grid, coal power in Shanxi and northern Shaanxi is sent via UHV AC, and coal power from Mengxi, Ximeng and Ningdong is sent through UHV AC/DC hybrid transmission. Xinjiang and Mengdong coal power passes UHV DC. "North China, East China and Central China" grid transmission.
In addition to traditional coal-fired electricity, UHV will also assume the task of transmitting electricity and water. The technologically exploitable hydropower installed capacity in 12 provinces in western China is 440 million kilowatts, accounting for more than 80% of the country. In particular, the southwestern region is a key area for future hydropower development in China.
According to the data provided by the State Grid Corporation of China, the UHVDC power grid of the primary loop can deliver 6 million kilowatts of electricity, which is equivalent to 5 to 6 times the existing 500 kV DC grid, and the transmission distance is also 2 to 3 times that of the latter. Therefore, the efficiency is greatly improved. In addition, delivering the same amount of power, if using UHV lines can save 60% of the land resources than using 500 kV EHV lines. UHV can greatly enhance the transmission capacity of China's power grid.
Huatai United Securities believes that according to the plans of the State Grid and South China Network, China will invest 6,000 billion yuan in the construction of AC-DC UHV power grids by 2020. During the "12th Five-Year Plan" period, that is, the next five years, the investment in AC-DC UHV will reach 400 billion yuan. It is estimated that UHV investment in 2010 will be about 30 billion yuan, and there will be a vast market in the future.
Transformer and high voltage switch benefit
It is understood that there are more than 100 electric equipment enterprises in the country that participated in the development and supply of UHV equipment. Among them, transformers were independently developed by TBEA, Shenyang Transformer Group, and Tianwei Baochang; reactors were developed by Xi'an Transformer Company and Hengyang Transformer. The company independently researches and develops; circuit breakers are jointly developed and shared by foreign companies, including Pinggao Electric, New Northeast Electric, and Xi'an High-voltage Electric; and protection and control systems are developed by NARI, Heiji, and Sifang.
Dongguan Securities predicts that by 2020, China’s investment in UHV construction will reach around 600 billion yuan. Among them, the demand for transformers and switches will be the largest. Transformer listed companies Tianwei Baobian, TBEA, and China Xidian will account for approximately 7% of the total investment. Switching listed companies Pinggao Electric and China West will account for approximately 15% of the total investment. , DC converter valve company XJ Electric and China Xidian benefit the most. Among the equipment suppliers, the three major high-voltage switchers and the three major transformer equipment suppliers will be the main beneficiaries. The UHV sector has high technical barriers and qualification barriers, leading enterprises will benefit a lot.
An analyst said that according to State Grid Corporation's statement, during the “Twelfth Five-Year Plan” period, the national grid investment will be tilted towards the UHV. Therefore, a small number of companies that can participate in the UHV project will have a good view. Among them, the biggest beneficiaries are Pinggao Electric and Xuji Electric in the revenue of the State Grid. Pinggao Electric is the biggest beneficiary of AC lines, and XJ Electric is the biggest beneficiary of DC lines. In terms of transformers, China Xidian, TBEA, and Tianwei change three points. According to public information, the main business of TBEA is the manufacture and sale of transformers, wire and cable and its auxiliary equipment.
Analysts at Huatai United Securities believe that since transformers account for 50% of substation investment, TBEA will have the most revenue in the UHV field in the future. However, as the company's revenue is close to 20 billion yuan, the proportion of UHV revenue will be within 15% in the future.
In an interview with reporters, the TBEA staff said that TBEA’s technology in the area of ​​UHV is still relatively advanced, and there is a certain degree of competitiveness in this area. But this also depends on the specific planning lines and bidding conditions of the UHV, whether it is more equipment or more secondary equipment. At present, it is still a conceptual impact.
In addition, UHV construction is a system and a huge project, and equipment is only one of them. If there are many UHV projects this year, the company will certainly have higher operating income. If there are more market demands in the future, the company will adjust the product structure accordingly. Relatively speaking, the company's market space in the future is relatively large and it should be able to obtain a relatively large market share.
The analyst also stated that in accordance with the order of benefits, China West's AC and DC transformers, converter valves, circuit breakers, GIS, arresters, and capacitors can benefit from UHV construction, Pinggao Electric's breakers and GIS. , Switch benefited from UHV, high proportion of revenue, Rongxin Group's future series compensation is expected to be more than 500kv necessary equipment, a set of UHV series of compensating prices of more than 100 million yuan, the domestic companies can produce only a series of electricity compensation The hospital and Rongxin shares have high barriers to entry. The Changgao Group's exchanges of UHV disconnectors and grounding switches have only 3 to 4 companies, including Changgao, Pinggao, and Xidian. The company is developing DC high-voltage isolation switches.
Sources from Siyuan Electric told the reporter that this is definitely good news for the company. However, if we look specifically at this, it depends on how much UHV products the company will involve in the implementation of the investment.

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