Morning Market Report

1. National Energy Administration strengthens the construction of electric power security governance system  

  The National Energy Administration (NEA) has launched a special action to improve the safety management system and norms for extra-high voltage transmission and distribution grids, as well as to promote the revision of the Regulations on Emergency Disposal of Electric Power Safety Accidents, and to strengthen the safety management of new grid-connected subjects involved in the grid.  

  Guizhou promotes the digitalization of power grid equipment: it has issued the 2025 Large-Scale Equipment Renewal Work Plan, explicitly promoting the elimination of energy-consuming equipment in metallurgy, chemical industry and other fields, and improving online monitoring devices for power transmission lines.  

2. Two-way drive between EU and China markets

  Accelerating domestic new energy installation (27.7GW of new PV and 79.3GW of wind power in 2024) drives demand for UHV and energy storage, while EU power market reforms and global grid investment expansion (projected to average $620 billion annually in 2030) creates opportunities for China's transformer exports.  

Major projects and technological breakthroughs  

3. Extra-high voltage and power grid project intensive landing

  Shipment of high-end converter transformer for “Ningdian to Hunan”: ±800kV converter transformer was shipped from Hengyuan Transformer Company to support the UHV DC transmission project from Ningxia to Hunan.  

  -Longdong-Shandong EHV started charged commissioning: the first bipolar high- and low-end synchronous commissioning project in China, with new energy transmission accounting for more than 50%, covering 926.4 km of lines in 5 provinces.  

  Xinjiang, Ningxia expansion project accelerated: Guohua NINGDONG II 750 kV step-up transformer expansion project was approved, Xinjiang Guanlong, Guiling 500 kV substation expansion is expected to be put into operation by the end of 2025.  

4. Intelligent and energy storage innovation  

  Yunnan launched the DeepSeek+ substation application: the fault diagnosis system based on a large model improves the efficiency of substation operation and maintenance, and realizes for the first time the high-voltage line robot's “aerial mending” operation.  

  Built a self-balancing microgrid in Suzhou: integrating waste heat power generation, photovoltaic and energy storage technologies, realizing dynamic regional energy balance, and helping energy-consuming enterprises to transform.  

Market Trends and International Cooperation  

5. Global transformer supply tension intensifies

 Overseas demand surge: Hitachi Energy said grid equipment production capacity “overwhelmed”, AI computing power to drive the growth of power demand, domestic companies such as CLP Power, Xuji Electric export orders lined up.  

  CLP Electric Saudi Arabia project shipment: for the Saudi oil refinery to provide high-temperature-resistant transformers, marking China's smart manufacturing to further expand the Middle East market. 6.  

6. Domestic enterprises layout new growth points

 State Grid and South China Grid Joint Venture established: focusing on cross-regional DC transmission and power market synergy, promoting the construction of a unified national power market.  

 Intelligent energy-saving transformers are sought after: old transformers are accelerated out, and head enterprises seize market share through temperature control technology and low-carbon design.  

Data & Outlook  

Electricity demand and exports: February social electricity consumption increased by 8.6% year-on-year, transformer exports increased by 47.7% year-on-year, high-voltage switches increased by 10.7%.  

Outlook 2030: Global renewable energy installed capacity may reach 5457GW (PV) and 3534GW (wind power), China's extra-high voltage and energy storage industry chain may continue to benefit.