Smart grid construction welcomes investment boom

October 19, 2019

During the “two sessions” this year, National People’s Congress deputy and Xue Yuansheng, academician of the Chinese Academy of Engineering, stated that China’s current technological conditions for accelerating the construction of UHV power grids have been met, and it is proposed to speed up the construction of UHV power grids as backbone grids and coordinate development of power grids at all levels. The smart grid, which is conducive to the overall optimization of the layout of energy resources and the coordination of environmental capacity, promotes the environmental protection, efficiency, safety, and reliability of energy development and utilization.

Market participants pointed out that the representatives of the "two sessions" or the smart grid construction once again ushered in the investment climax.

Smart grid construction is of great significance

With the development of society and economy, the proportion of electric energy in terminal energy will at least double. The data shows that in 2011, the proportion of thermal power installations in China's power supply structure was about 72%, and the power generation was about 81%. Coal accounted for about half of the national coal consumption. Due to the coal transportation pattern of the north coal south and west coal east transport, excessive dependence on coal transmission and transmission of electricity is too low, which is very unfavorable for dealing with extreme disasters, and also brings with it problems such as intensified contradictions in coal and electricity transportation and power supply shortages.

In this regard, industry sources pointed out that China's energy development must take intensive development, long-distance large-scale transport of roads, UHV power grid is to adapt to large coal power, large hydropower and large-scale renewable energy base intensified development of the technical direction.

Xue Yusheng said that at present, the UHV AC-DC demonstration project has been fully successful and has mastered the key core technologies. In particular, the UHV AC/DC project has been successfully put into operation successively, which verifies the safety, feasibility and superiority of UHV transmission, and has the conditions for large-scale promotion.

Xue Yusheng believes that during the transitional period of construction of UHV target power grids, comprehensive security defense can be achieved by strengthening the construction of secondary systems, strengthening on-line monitoring and risk prevention and control. However, in the long run, relying solely on secondary systems is not enough, and strengthening the power grid is the foundation of electricity safety and environmental security. This requires accelerating the construction of a smart grid with UHV power grids as backbone grids and coordinated development of power grids at all levels, which is conducive to optimizing the layout of energy resources and the overall coordination of environmental capacity, and promoting the environmental protection, efficiency, and safety of energy development and utilization.

In addition, UHV technologies and smart grids are not limited to traditional grid transmission and distribution industries, but also involve upstream and downstream related industries. They will effectively promote technological innovation and industrial upgrading in energy, power, and electrical equipment and other related fields, radiating the infrastructure and The construction of people's livelihood services will improve the independent innovation capability and international competitiveness of national equipment enterprises and promote the building of an innovative country.

Equipment investment is in full swing

At present, the national, local governments and power equipment suppliers have realized the importance of smart grid construction. Smart grid investment and construction plans have also been introduced.

China Union Business Daily reporter learned from the State Grid Corporation of China that the State Grid will complete a strong smart grid investment of more than 300 billion yuan in 2012, and it is expected to solve the problem of electricity consumption for more than 400,000 people without electricity. Among them, it will focus on core technologies and key equipment to carry out research, it is estimated that the annual research and development funds will reach 8 billion yuan.

The relevant experts of the State Grid said to "China United Business Daily" that at present, China has formed a full set of domestic production capacity of UHV power transmission and transformation equipment, and the integrated localization rate of equipment has reached 90%. "Anyone who has mastered the market dominance will be able to make profits. Therefore, the State Grid has smashed 8 billion yuan for the research and development of core technologies and key equipment."

At present, local governments have increased their investment in smart grids. Take Jiangsu Province as an example, by 2015, it will invest 40 billion yuan to build the northern Jiangsu power grid, strive to start construction of UHV projects, implement coastal passages, Xu Liantai transmission, nuclear power transmission and other projects, and optimize the 500 kV transmission project and 220 kV Grid. In Xuzhou, the power sector has closely focused on the four pillar industries of equipment manufacturing, trade and circulation, and other four-billion-dollar pillar industries, and has compiled special plans for key areas such as the Xuzhou New City Zone to build a strong smart grid.

ABB North Asia and ABB (China) Co., Ltd. president Fang Qin is very optimistic about the smart grid market prospects. Fang Qin believes that the development of key markets such as smart grid will support the company's growth in 2012. Although economic growth began to slow in 2011, ABB has achieved sustained growth in China thanks to strong market demand for automation and grid reliability. In 2011, ABB and Guodian Nanzi jointly established a large-scale joint venture, Nanjing SAC Automation Co., Ltd., to strengthen the product portfolio in the areas of power grids, power plants and industrial infrastructure. The two-way joint venture invested a total of 1.75 billion yuan, and merged the power grid automation related businesses.

â–  Extended reading

Development of Smart Grid Writing in Government Work Report

In the "two sessions" this year, Premier Wen Jiabao pointed out in his government work report that it is necessary to strengthen energy management, develop smart grids and distributed energy, and implement effective management methods such as energy-saving power generation dispatching, contract energy management, and government energy-saving procurement. It is necessary to optimize the energy structure, promote the clean and efficient use of traditional energy, develop nuclear power safely and efficiently, actively develop hydropower, speed up shale gas exploration and development, increase the proportion of new energy and renewable energy, and strengthen the construction of energy channels.

Relevant experts believe that the development of the smart grid written by Premier Wen Jiabao's government work report shows that the construction of the smart grid has been recognized by the government's top management. The smart grid construction will be irreversible. We have sufficient capabilities to ensure the safety of UHV power grids. When UHV construction was proposed, it was full of disagreement. Opponents thought that UHV raised challenges to the safe operation of the power grid and it was not economical. However, from the analysis of the operation of the southeastern Shanxi-Jingmen line, UHV power transmission is beneficial to the solution of China’s electric energy. The problem of long-distance transmission has important practical significance for the rational distribution of electric energy in China.

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