The pattern of power grid equipment suppliers is relatively stable, and leading companies have performance certainty.
According to the research report published by Eastmoney on June 14th, State Grid ECP issued the third tender procurement of ultra-high voltage (UHV) project services (preliminary stage) on June 14th, which mainly includes the UHV AC transmission of Yanwei, the invitation to tender for the full-voltage direct flexible research of Gansu Baoji Jilin Electric Sichuan Engineering, and the service tender for line projects such as Jindian(Nanjing) transmission to Chuan Chongqing, Datong-Tianjin South AC exchange, Qinghai-Tibet DC phase two and Gansu-Zhejiang DC, etc. It is recommended to pay attention to the UHV related suppliers such as valve converter, direct control and protection system: XJ Electric(000400.SZ) and NARI Technology(600406.SH); GIS: Pinggao Electric(600312.SH); converter transformer: China XD Electric(601179.SH) and TBEA Co., Ltd.(600089.SH); thyristor: Peregrine Semiconductor Converters (300831.SZ), etc.
On June 14th, State Grid ECP issued the third tender procurement of ultra-high voltage (UHV) project services (preliminary stage), which mainly includes the UHV AC transmission of Yanwei, the invitation to tender for the full-voltage direct flexible research of Gansu Baoji Jilin Electric Sichuan Engineering, and the service tender for line projects such as Jindian(Nanjing) transmission to Chuan Chongqing, Datong-Tianjin South AC exchange, Qinghai-Tibet DC phase two and Gansu-Zhejiang DC, etc. Among them, the Yanwei AC project involves the construction of one new switching station and the expansion of two substations; the Gansu Power direct current ultra-high voltage involves the construction of two converter stations on the sending/receiving end; both require feasibility studies to be completed by December 2024.
The views of Eastmoney are as follows:
UHV and main grid are still the main lines of power grid construction, and the reserve projects for UHV and energy storage were released in May 2024.
On May 17th, 2024, State Grid released the 13th batch of procurement (the first tender procurement in the preliminary phase of UHV project) announcement, which mainly involves the feasibility study and exploration design of converter stations and lines of Tibet southeast to Guangdong, Hong Kong and Macao DC (Tibet section), as well as the disclosure of 14 UHV reserve projects. On May 28th, the National Energy Administration released a circular on "Doing a Good Job in the Disposal of New Energy and Ensuring the High-quality Development of New Energy", proposing 37/33 key projects for the supporting power grid of new energy that will start construction/production in 2024, involving multiple voltage level transmission and transformation projects above 220KV. This indicates that at present, the main grid/UHV is still the main line of power grid construction.
In terms of transmission technology, the trend of full-voltage direct flexible transmission is clear.
Compared with conventional HVDC transmission methods, full-voltage direct flexible DC transmission has outstanding advantages, such as no phase-shifting failure, continuous power regulation, ability to provide voltage and frequency support to the power grid, less harmonic distortion, and black start capability. Due to the limited power supply structure of some new energy bases, mainly composed of photovoltaic and wind power, and the weak grid structure of the receiving-end power grid, large-scale new energy bases will be an important form of China's new energy consumption in the future sent out through UHV flexible DC transmission. According to the announcement of Southern Power Grid, feasibility studies of Gansu-Zhejiang, Mengxi-Jingjinji, Tibet southeast to Guangdong, Hong Kong and Macao, and Badan Jilin-Sichuan transmission lines are all conducted in accordance with the feasibility research of double-end flexible converter stations.
The power grid equipment supply market has a relatively stable structure, and leading companies have a certain level of performance certainty.
It is recommended to pay attention to UHV related suppliers such as valve converter, direct control and protection system: XJ Electric, and NARI Technology; GIS: Pinggao Electric; converter transformer: China XD Electric, and TBEA Co., Ltd.; thyristor: Peregrine Semiconductor Converters; insulator: Dalian Insulator Group, and Jiangsu Shemar Electric; arrester: Kingray Electric.
Risk reminder: The demand for new energy installed capacity is lower than expected; power grid construction is behind schedule; the approval and commencement schedules of UHV are behind expectations, etc.