Prospects for the Development of China's Electrical Industry


2009 was a difficult year for China's economy, 2010 was a complex year for China's economy, and 2011 is still continuing this complex trend. Because 2011 and even 2012 were both years of economic transformation in China. Wu Xiaoqiu, the director of the Institute of Finance and Securities at Renmin University of China and a renowned economist, stated in his prediction of China's macroeconomic trends in 2011.

In this year of the beginning of the 12th Five Year Plan, for the electrical industry, power grid construction will become the focus of power investment in 2011. At the same time, related smart grid construction, rural power grid transformation, and ultra-high voltage power grid construction have once again encountered significant opportunities for rapid development in this era.

In the next three years, 300 billion yuan will be invested in rural power grid transformation. Premier Wen Jiabao of the State Council chaired a State Council executive meeting on January 5, and decided to implement a new round of rural power grid transformation and upgrading projects. The meeting proposed to increase financial support. The capital for rural power grid renovation and upgrading projects in the central and western regions is mainly arranged by the central government. Continue to implement the policy of charging an additional 2 cents per kilowatt hour of electricity, specifically for the repayment of principal and interest on loans for rural power grid construction and upgrading projects.

The meeting pointed out that since the implementation of rural power grid transformation, rural power management system reform, and urban and rural electricity supply with the same price and network in 1998, China's rural power grid structure has significantly improved, power supply reliability has significantly improved, and rural residents' electricity prices have significantly decreased, creating good conditions for rural economic and social development. However, due to various factors, there are still many contradictions and problems in the construction of rural power grids in China. The renovation of rural power grids in remote areas of the central and western regions is low, and most of the agricultural production and power supply facilities, as well as independently managed farms, forest farms, and small hydropower self supply areas, have not been renovated. Some areas have not yet achieved the same grid and price for urban and rural electricity, and some renovated rural power grids are also not suitable for the rapidly growing demand for electricity. We must implement a new round of rural power grid transformation and upgrading projects in accordance with the principles of unified planning, step-by-step implementation, adapting to local conditions, highlighting key points, being economically reasonable, advanced and applicable, deepening reform, and strengthening management.

Recently, the State Grid Corporation of China also made it clear at the 2011 work conference that "the development of ultra-high voltage is the top priority of the grid development during the 12th Five Year Plan". In the next five years, China will invest more than 500 billion yuan to build the "three vertical and three horizontal" ultra-high voltage AC backbone grid and 11 ultra-high voltage direct current transmission projects. The total length of ultra-high voltage transmission lines will reach 40000 kilometers, forming a strong grid grid for coordinated AC and DC development.

The Japanese earthquake and nuclear power pollution have brought international nuclear power into a comprehensive review stage, and the pace of development will be halted. The National Energy Work Conference held on January 6th proposed to efficiently develop nuclear power while ensuring safety, prioritizing coastal nuclear power construction and steadily advancing inland nuclear power projects. The transition from "positive" to "steady" also reflects the country's grasp of the "speed" of nuclear power development.

During the 12th Five Year Plan period, China will continue to vigorously develop and optimize its energy structure, prioritizing the development of high-quality and clean electricity. China is highly likely to become a major global electricity application market in the first year of the 12th Five Year Plan period. According to the annual energy statistics released by BP, in 2009, the electricity generation in the United States was 4.1496 trillion kilowatt hours, a decrease of 3.8%, accounting for 20.7% of the global total, while China's electricity generation was 3.7251 trillion kilowatt hours, a year-on-year increase of 6.9%, accounting for 18.5% of the global total. In 2009, China's electricity generation was equivalent to 89.77% of the United States, while in 2007 it was 75.18%, in 2000 it was 33.97%, and in 1990 it was 19.50%. This number will approach 100% in 2010, and it will exceed 100% in 2011 without any surprises.

The 12th Five Year Plan This will be a very exciting period for China's electrical market, and the overall environment of China will become the driving force for the development of the electrical market, promoting China to gradually become a global large and advanced electrical application market. At the same time, domestic electrical enterprises in China will also continuously improve themselves in competition, comply with the trend of history, become stronger and larger, continuously strengthen brands, promote the development of China's electrical industry, and promote the reform of electrical technology. Let's explore Looking forward to the innovation of the Chinese market.

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Prospects for the Development of China's Electrical Industry

In this year of the beginning of the 12th Five Year Plan, for the electrical industry, power grid construction will become the focus of power investment in 2011. At the same time, related smart grid construction, rural power grid transformation, and ultra-high voltage power grid construction have once again encountered significant opportunities for rapid development in this era.


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