Regional power grid upgrade

The upgrading of regional power grids is becoming a core aspect of the global energy transition, encompassing multiple directions such as ultra-high voltage power transmission, smart grids, distribution network transformation, and energy storage support.

• Domestic power grid upgrades are accelerating:During the "15th Five-Year Plan" period, the State Grid's fixed assets investment is expected to reach 4 trillion yuan, representing a 40% increase compared to the "14th Five-Year Plan" period, with a focus on promoting the construction of ultra-high voltage, smart grid, and intelligent distribution network.Recently, Zhejiang, Guangdong, Hebei, and other regions have been continuously carrying out upgrades and renovations of rural power grids and urban core area power transmission and transformation projects, aiming to enhance power supply reliability and load-bearing capacity.

• The construction of UHV (Ultra-High Voltage) transmission lines is a backbone force:UHV has become the key to cross-regional power allocation, leveraging its advantages of large capacity and low loss.China has mastered the world-leading UHV technology.

• Smart grid and digital empowerment:The power grid is transitioning from "passive power transmission" to "active regulation and control", achieving state sensing, fault self-healing, and resource optimization through technologies such as secondary equipment, virtual power plants, and power IoT, thereby enhancing system flexibility and stability.

• The demand for overseas power grid upgrades has surged:Three major regional power grid operators in the United States have been approved for a $75 billion transmission expansion project, which plans to construct 765 kV ultra-high voltage lines with a transmission capacity six times that of traditional lines, in order to cope with the surge in electricity consumption by AI data centers and the aging of the power grid.The European Union also plans to invest over 400 billion euros in grid transformation by 2030, presenting a historic opportunity for Chinese power equipment to go global.

• AI and new energy drive new demands:The high power consumption characteristics of AI computing power centers impose higher demands on the power grid, spurring the need for upgrades across the entire industry chain, from the backbone network to the end distribution network, and from transformers to energy storage systems. These upgrades encompass multiple dimensions, including power supply stability, power quality management, and captive power supply.