Sunday, June 7, 2009

China will Invest 87.6 billion USD in the Construction of Ultra-high Voltage Transmission

During the 2009 International Ultra-high Voltage Transmission Technology Conference held on 21st May, the person of State Grid Corporation of China revealed that the State Grid will invest in 600 billion Yuan (87.6 billion USD) in the construction of ultra-high voltage transmission before 2020.

The State Grid will invest in 600 billion Yuan (87.6 billion USD) in the construction of ultra-high voltage transmission before 2020, which far exceed the original planed investment amounts. The original plan is that the ultra-high voltage girds will be basically completed by 2020 and the transmission quantities of the electricity will reach over 200 million kilowatts, accounting for 25% of the total installation capacity all over the country. The largest gird corporations will totally invest 406 billion Yuan (59.3 billion USD) in the ultra-high voltage grids, including 256 billion Yuan for the alternating current and 150 billion Yuan for the direct currency.

The southeastern Shanxi-Nanyang-Jingmen projects, the first ultra-high voltage alternating currency experiment demonstration project in China with more than two years of construction, would be officially completed and in operation on 6th January, 2009, indicating China has succeeded in mastering the core technologies of ultra-high voltage transmission in long distance, large installation capacity and low losses. The three largest ultra-high voltage alternating currency transmission and transformation project from Huainan to Shanghai, Xinlinguole to Shanghai and northern Shaanxi to Changsha will be started to construct this year. Apart from these three projects, the State Grid will also speed up the constructions of the ultra-high voltage direct currency projects from Xiangjiaba to Shanghai and Jinping to southern Jiangsu. The general localization rate of the southeastern Shanxi-Nanyang-Jingmen projects has reached over 90% and the basic equipments are all from domestic equipment manufacturers except of a small part of components. Therefore, the over investments of the State Grid on the ultra-high voltage transmission will bring larger development opportunities for Chinese domestic ultra-high voltage equipment manufacturers. The ultra-high voltage technologies mainly center on several giant enterprises and the ultra-high voltage equipment field has become oligopolistic competition pattern, the major products covering transformers, converter valves, switches, control and protection equipments and other complete equipments and major involved listed companies including TBEA Co., Ltd, Baoding Tianwei Baibian Electric Co., Ltd, XJ Electric Co., Ltd, Henan Pinggao Electric Co., Ltd and Nari Technology Development Limited Company etc.

Source: China Research and Intelligence
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