Grid construction will bring a share of the pie to the cable industry.
According to the “11th Five-Year” power grid development plan formulated by State Grid Corporation, the company’s total investment in power grid construction will reach approximately 850 billion yuan, while the nation’s total investment will exceed 1 trillion yuan. The new round of large-scale power grid and urban power network construction and renovation is once again sparking a boom in the wire and cable industry. Across the country, enterprises are also launching production lines for medium- and high-voltage cross-linked cables.
During the 11th Five-Year Plan period, the State Grid Corporation will add 60,000 kilometers of transmission lines with voltage levels of 330 kV and above, as well as 300 million kVA of substation capacity. The Southern Power Grid plans to complete and put into operation 15,651 km of 500 kV AC transmission lines with a substation capacity of 61.75 million kVA; complete and put into operation 1,225 km of 500 kV DC transmission lines with a transmission capacity of 3 million kW; and complete and put into operation 1,438 km of 800 kV DC transmission lines with a transmission capacity of 5 million kW.
Over the next five years, China plans to significantly expand the scale of its backbone grid construction. In the coming two years, State Grid Corporation intends to complete two ultra-high-voltage transmission and transformation projects: one is an AC project running from southeastern Shanxi through Nanyang to Jingmen; the other is a 1,000-kV AC transmission and transformation project stretching from Zhaotong in Yunnan through Guilin in Guangxi to Huidong in Guangdong. According to experts' projections, by 2020, the transmission capacity of ultra-high-voltage and inter-regional power grids will reach 210 million kilowatts, of which approximately 56 million kilowatts will be provided by 800-kV DC lines, while the remaining roughly 150 million kilowatts will be supplied by AC lines. By 2020, the total market for ultra-high-voltage AC and DC systems will amount to 406 billion yuan, with AC accounting for 256 billion yuan and DC for 150 billion yuan.
Some commentators point out that the combined output value of the top ten wire and cable manufacturers in the national wire and cable industry accounts for only about 10% of the entire industry’s total output, indicating a low level of industrial concentration, insufficient economies of scale, and prominent structural contradictions in product offerings. The wire and cable industry is significantly affected by rising copper and aluminum prices. In China, raw materials account for roughly 80% of the total cost of wire and cable products. Currently, the industry is facing substantial price increases in key raw materials—copper and aluminum—and thus possesses very limited bargaining power.
Due to the severe underinvestment in urban power grid construction in our country, most urban power grids have extremely weak structures and suffer from exceptionally serious aging problems. According to the “11th Five-Year Plan” of the State Grid Corporation, the planned investment for the renovation and upgrading of urban power grids in the 31 provincial capital cities and separately listed cities in this phase exceeds 400 billion yuan. The Southern Power Grid’s investment will account for roughly one-quarter of the State Grid’s total investment. Combined, the total investment for both grids will reach approximately 500 billion yuan, with an average annual investment exceeding 100 billion yuan.
The construction of power grids in major cities requires tens of thousands of kilometers of medium- and high-voltage cross-linked cables. Consequently, cable companies with strong financial resources are now planning to launch new production lines for medium- and high-voltage cross-linked cables to expand their capacity—and some are even building 500kV cross-linked VCV production lines.
Keywords:
Other Information
Kazakhstan invests 3.25 billion yuan to build a high-voltage transmission line.
Kazakhstan Power Grid Company plans to invest 470.9 million U.S. dollars (approximately 3.25 billion RMB) in a 500-kV high-voltage transmission project that will connect the northern, eastern, and southern power grids. The project aims to establish a modern grid infrastructure capable of providing uninterrupted power supply to multiple regions across Kazakhstan.
According to reports, this high-voltage transmission project...
Get the latest messages
If you have any suggestions or requirements
