China to invest $US14.6bln in high voltage line
2009 - Asia Pulse Data Source
China's State Grid announced recently
that it would invest over 100 billion yuan ($US14.6
billion) in ultra high voltage (UHV) transmission
line construction in the next 3-4 years.
Analysts hold this will be favourable
for expansion of the domestic power transmission and
transformation equipment market and benefit China's
power transmission and transformation equipment manufacturing
giants like Baoding Tianwei Baobian Electric Co.,
Ltd (SH:600550) and TBEA Co., Ltd (SH:600089).
So far, China's first 1,000-kilovolt
ultra high voltage transmission line linking Shanxi
province with Jingmen City in Hubei province via Nanyang
in Henan province has gone into formal operation on
According to a government plan, China
will build 4,200 kilometres of UHV transmission lines
with 39-million kilovolt ampere transformation capacity
during the country's 11th Five-Year Program period
Meanwhile, China will step up the construction
of the Xiangjiaba-Shanghai and Xiluodu-Zhuzhou UHV
directing current (DC) transmission lines.
By 2020, China is expected to build
up a backbone UHV power grid with two north-south
and two east-west transmission lines.
The power transmission capacity would
exceed 200 million kilowatts, taking 20 per cent of
the nation's total installed capacity.
The 4-trillion stimulus economic package
carried out by Chinese government has listed the construction
of backbone power grid as a key project, which is
believed to refer to the construction of UHV transmission
At present, of China's two power grids,
the State Grid has two UHV dc transmission lines from
Xiangjianba to Shanghai and form Jinping to Nanjing,
which are expected to finish construction in 2010
and 2012 respectively; China South Grid has a 1,300-kilometre
UHV DC transmission line under construction from Yunnan
Han Ling, researcher with Everbright
Securities, holds that the total investment in China's
UHV DC converter stations would amount to 135.6 billion
yuan in the next 10 years.
Accordingly, the market capacity of
converter transformer, converter valve, and control
and protection system would reach 29.8 billion yuan,
33.9 billion yuan, and 8.1 billion yuan respectively,
making China the largest demander for DC transmission
Zhou Tao, researcher with Great Wall
Securities, holds that the great demand for transmission
equipments would provide good opportunities for China's
leading power transmission and transformation equipment
manufacturers to expand their market shares.
According to statistics, in the domestic
converter transformer market, TBEA Co., Ltd currently
takes about 40 per cent market shares, Tianwei Baobian
Electric 25 per cent, and Xuji Group and XJ Electric
Co., Ltd (SZ:000400) 30 per cent.
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