Transfer from: Prospective Industry Research Institute

Major listed companies in the industry: Canaan Intelligent (300880.SZ); Golden Crown Electric (688571.SH); Xu Ji Electric (000400.SZ); Golden Crown (300510.SZ), etc.

The core data of this article: the market size of China's smart grid industry; the number of production-oriented enterprises above designated size in the smart grid industry; the downstream applications of the smart grid industry

Industry Overview

1. Definition

In 2015, the "Guiding Opinions on Promoting the Development of Smart Grid" jointly issued by the National Development and Reform Commission and the National Energy Administration clearly pointed out that the smart grid is based on the traditional power system, through the integration of new energy, new materials, new equipment and advanced sensing technology, information technology, control technology, energy storage technology and other new technologies, the formation of a new generation of power system, with a high degree of information, automation, interaction and other characteristics, it can better realize the safe, reliable, economical and efficient operation of the power grid.

The concept of smart grid covers improving the technological content of the power grid, improving the efficiency of comprehensive energy utilization, improving the reliability of power grid power supply, promoting energy conservation and emission reduction, promoting the use of new energy, and promoting the optimal allocation of resources. It is a social linkage system. Engineering, and ultimately realize the maximization of power grid benefits and social benefits, represents the future development direction. The smart grid takes the power system including power generation, transmission, distribution, energy storage and power consumption as the object, and applies digital information technology and automatic control technology to realize the two-way exchange of information from power generation to power consumption, and systematically optimize the production, transmission and use of power. Overall, the future smart grid should be a self-healing, safe, economical, clean and able to provide high-quality power network adapted to the digital age.

2. The industrial chain involves five major links

The smart grid industry chain involves five major links: power generation, transformation, transmission, distribution and electricity consumption. Among them, the power generation link includes renewable energy power generation (hydropower, etc.) and non-renewable energy power generation (thermal power generation, etc.); The middle reaches are all links of smart grid, mainly including smart power transformation, smart power transmission and smart power distribution. Downstream is the end-user power consumption link of electric energy, which is mainly divided into industrial power consumption, residential power consumption and various types of commercial power consumption.

After many changes, my country's power grid system has evolved into the current "5 2 N" system, that is, among the five major links of power grid generation, transmission, transformation, distribution, and use, power generation, transmission, transformation and distribution are all In the hands of the five major power plants and dual networks, the part that private enterprises can participate in is only the manufacturing of electricity links and related equipment.

Industry Development History: Transition to New Energy System

China's smart grid is defined as "Strong & Smart Grid. At the "2009 International Conference on UHV Transmission Technology", the State Grid Corporation of China put forward the development plan of China's smart grid for the first time, and established the overall development goal, that is, to accelerate the construction of UHV grid as the backbone grid and coordinate the development of power grids at all levels. Based on the strong power grid, using advanced communication, information and control technology, build a strong smart grid with independent innovation and international leading characteristics of informatization, digitization, automation and interaction.

In 2009, China officially launched the smart grid plan, and since then China's smart grid construction has begun. According to the plan, China's smart grid planning pilot phase from 2009 to 2010; 2011-2015 is the comprehensive construction stage of China's smart grid; 2016-2020 is the leading and upgrading stage of China's smart grid.

By the end of 2020, China has basically built a unified strong smart grid, and its technology and equipment have reached the international advanced level. According to the "the People's Republic of China National Economic and Social Development Fourteenth Five-Year Plan and 2035 Long-term Goal Outline", my country's next power energy development direction will shift to the direction of new energy.

Industry policy background: promoting the construction of energy intelligent control system

On May 21, 2009, the State Grid Corporation of China put forward a development plan called "Strong Smart Grid" at the "2009 International Conference on UHV Transmission Technology. In the early stage of the subsequent smart grid construction, policies have been issued one after another, which have played a guiding role in the pilot construction of smart grid, the formulation of development framework, and the establishment of industry norms. In recent years, with the gradual completion of my country's strong smart grid, my country's smart grid field has entered a stage of deep penetration into the terminal field. Promoting the construction of an energy smart control system, enhancing the smart grid's ability to accept new energy power generation, and giving full play to the smart grid The coordinating role of power infrastructure has become the main content of the current policy promotion of my country's smart grid industry.

Industry development status

1, smart grid construction investment in three stages

China's smart grid construction will be carried out in three stages. The planning pilot stage will be carried out from 2009 to 2010, mainly to formulate development plans, technology and management standards, carry out technology and equipment research and development, and pilot work in various links. UHV related enterprises will benefit significantly. Starting from 2011 to 2015, UHV transmission construction is still the focus, and secondary equipment represented by digital substations will face huge market space; from 2016 to 2020 to lead the upgrading phase, advanced dispatching systems and all-digital substations will become standard configurations, smart meters will be fully covered, and distributed energy, practical energy storage devices, and electric vehicle charging stations will be widely used in major cities.

The proportion of intelligent investment in China's power grid is low, but with the advancement of smart grid, the proportion of intelligent investment in power grid investment will increase significantly. The average annual investment of intelligent investment during the "Twelfth Five-Year Plan" period is double that of the first stage, and the proportion of investment in power grids has also increased from 6.2 to 11.7. With the development of smart grid construction, intelligent investment will increase significantly, and the proportion of secondary equipment investment will increase from less than 5% to 12%-15%. According to the plan, the planned investment in China's power grid in the three major stages of 2009-2010, 2011-2015 and 2016-2020 is 551 billion yuan, 1500 billion yuan and 1400 billion yuan respectively, of which the planned investment in smart grid is 34.1 billion yuan, 175 billion yuan and 175 billion yuan.

2. the investment scale of each stage has changed

due to the different technical maturity and construction urgency of each link, it is expected that the construction speed of each subdivision link will be different. whether in terms of technical ease or enthusiasm, the construction speed of the power distribution link and power consumption link of the local government will be higher than that of the power transformation link and power transmission link of the power grid headquarters. Therefore, the construction of distribution network automation system, electricity information collection system and terminal equipment, electric vehicle charging equipment is growing faster. In the link responsible for the power grid headquarters, the transformation link, online monitoring will appear explosive growth, followed by flexible transmission, intelligent scheduling system investment is relatively stable. Overall, the proportion of electricity consumption in intelligent investment is the highest, reaching 30.8 percent, mainly due to the large scale of construction of electricity information collection and other projects, so the investment is large. Followed by the distribution link accounted for 23.2, substation links accounted for 19.5, mainly due to the distribution of intelligent, intelligent substation construction and transformation of the project scale.

investment in smart grid in March and 2023 is about 61 billion yuan

according to the investment scale of China's power grid by the China electric power enterprise association and the 12.5 percent of the national planning intelligent investment, it can be obtained that the investment in China's smart grid is 62.6 billion yuan in 2022 and the prospective preliminary statistics show that the investment in smart grid is about 61 billion yuan in 2023.

Industry competition landscape

1. Regional competition: the layout of China's eastern coastal areas is relatively perfect

From the perspective of the regional distribution of smart grid listed companies in my country, the layout of smart grids in the eastern coastal areas of my country is relatively complete. Among them, Jiangsu, Zhejiang and Shandong are all provinces with more developed smart grid industry chain construction.

2. Enterprise competition: it can be divided into two factions: equipment suppliers, system and solution suppliers

The key links of the smart grid industry focus on the fields of transmission, transformation and distribution. Therefore, the main participating manufacturers can be divided into two major factions: equipment suppliers, system and solution suppliers. Each faction has gathered a group of large-scale and strong manufacturers, as follows:

The smart grid industry has not yet been ranked by an authoritative organization. Therefore, the prospect is ranked by the revenue of relevant fields in the smart grid enterprises, which indirectly reflects the competitiveness of manufacturers in the industry. The details are as follows:

Industry development prospect and trend forecast

1. The future development direction of smart grid includes five key points

According to the national "Guiding Opinions on Promoting the Development of Smart Grids", "Guiding Opinions on Promoting the Development of" Internet "Smart Energy" and other guiding documents, in order to achieve the overall goal of "safe, reliable, green, and efficient", focusing on smart The future development direction of my country's smart grid industry includes five key points in the whole link of grid power generation, transmission and distribution, they are clean and friendly power generation, safe and efficient power transmission and transformation, flexible and reliable power distribution, diverse and interactive power consumption, smart energy and energy Internet.

2. it is estimated that the investment in intelligent power grid in China during the "14th five-year plan" period is about 375 billion yuan

The "14th Five-Year Plan" clearly mentions that during the "14th Five-Year Plan" period, China should speed up the intelligent transformation of power grid infrastructure and the construction of smart microgrids, improve the complementary and intelligent regulation capacity of the power system, strengthen the connection between source network and storage, and enhance the capacity of clean energy consumption and storage.

according to the 2022 of the annual development report of China's electric power construction industry issued by the China association of electric power construction enterprises, during the 14th five-year plan period, China will add 90000 kilometers of AC lines of 500 kv and above, with a substation capacity of 0.9 billion kva, the transmission capacity of the stock channel will be increased by more than 40 million kilowatts, the construction of trans-provincial and trans-regional transmission channels will be started, and the planned investment of the power grid will be close to 3 trillion yuan. With reference to the third phase of planning intelligent investment of 12.50 percent of the data, it is estimated that the "14th Five-Year Plan" period of China's power grid intelligent investment of about 375 billion yuan. On the whole, China's smart grid industry has a good development prospect.

For more research and analysis of this industry, please refer to the "China Smart Grid Industry Market Outlook and Investment Strategic Planning Analysis Report" by the Foresight Industry Research Institute.

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