How is the pace of UHV construction changing?

  • In mid-October, State Grid’s three “one AC, two DC” UHV projects received approval together, with total investment of around 59.1 billion yuan. Cailian Press reports that UHV DC transmission projects are entering a new peak period for approvals and construction starts.
  • According to plans released by the National Energy Administration, nationwide grid fixed-asset investment during the Fifteenth Five-Year Plan will exceed 5 trillion yuan, up more than 40% from the Fourteenth Five-Year Plan, with an annual average exceeding 1 trillion yuan. This is the investment scale for the entire grid, covering a broader scope than UHV projects.

Why is it necessary to accelerate interregional power transmission?

  • Industrial electricity consumption is rising steadily, while new infrastructure such as AI computing centers and data centers is also increasing electricity demand. The power shortfall in eastern load centers continues to widen. The inverse distribution of energy supply and load makes interregional power transmission an important part of resource allocation.
  • UHV construction involves major equipment such as converter valves and transformers, as well as components such as DC support capacitors and power semiconductors. How additional construction demand translates into benefits for specific companies also depends on the equipment segment their products serve and their participation in the projects.

What products and project experience do the companies have?

  • Pinggao Electric’s main businesses include UHV, EHV and HV switchgear, as well as complete power-distribution equipment. Its GIL products have been delivered for the synchronous condenser project at the Lhasa converter station and have also been used in projects such as the Sutong 1000 kV AC UHV GIL utility tunnel.
  • XJ Electric has the capability to provide complete sets of UHV DC and flexible DC transmission equipment and integrated solutions. Its business covers UHV DC transmission at ±1100 kV and below, flexible DC transmission at ±800 kV and below, as well as maintenance and testing services.