Smart grid has entered an important stage of comprehensive construction

China is one of the fastest growing markets and has now become the second largest market in the world. Especially in the recent period, the construction of projects such as accelerating the transmission of electricity from the east to the west, mutual supply from north to south, and cross-regional networking has led to the rapid development of the transmission and distribution equipment industry in China. The industry believes that, from the current market development point of view, the next few years, China's transformer manufacturing industry will usher in a sustained and stable period of development.

In the next few years, driven by smart grid construction, UHV construction and grid upgrading, and the development of the power industry, it is expected that the growth rate of power transformers will remain at around 10% during the 12th five-year period.

During the 12th Five-Year Plan period, the State Grid Corporation of China will invest more than 300 billion yuan for the exchange of UHV construction. In 2015, it will form a three-phase, three-horizon, and three-horizontal Sanhua AC UHV synchronous network, with the addition of 38 new UHV substations. The capacity of 260 million kVA, the new UHV AC line 26,000 kilometers; the development of 15 DC projects, the total converter capacity 230 million kilowatts, the line length of 25,000 kilometers.

The transformation of domestic rural power grids has provided strong impetus to the increase in demand for transformers. China's new round of rural power grid transformation and upgrading has achieved positive results. As of November 2013, the two major power grid companies completed a new round of rural power grid upgrading and upgrading and an investment of 276.18 billion yuan in power-free regional power construction. According to the National Grid and China Southern Power Grid's disclosed investment targets for rural power grid reconstruction, the total investment of the two major power grid companies during the 12th Five-Year Plan period will exceed 500 billion yuan, and its China Network is expected to invest nearly 400 billion yuan, and South China Net is expected to invest 111.6 billion yuan. The transformation of rural power grids will directly increase the investment in power grid construction, and will increase the share of cakes for the power equipment manufacturing industry. The transformer industry will usher in a new period of development opportunities.

New energy generation brings new opportunities for transformers. From the perspective of some of the new energy power generation industries in China, the installed capacity of wind power, photovoltaic power generation, waste power generation, and waste heat power generation all maintained growth. As of the end of 2012, the cumulative installed capacity of wind power in China was 60.83 million kilowatts, a year-on-year growth rate of 35%, the cumulative installed capacity of photovoltaic power generation was close to 5,000 megawatts, and the newly installed capacity of waste heat power generation was about 800 megawatts.

Transformer as a power transmission industry's necessary transmission and distribution equipment, its demand and the size of electric power network investment is closely related. In recent years, the rapid development of the new energy power generation industry has brought about a better development space for transformers, and has also become an important direction for transformer manufacturers to seize market segments and expand business scope. At the same time, it also promoted the optimization of transformer product structure and technological innovation.

At present, the smart grid has entered an important stage of comprehensive construction. The intelligent construction of urban and rural distribution networks will be fully opened. Smart grids and smart complete sets of equipment, intelligent power distribution and control systems will usher in a golden period of development. This undoubtedly provides a good room for growth for the transformer manufacturing industry.