Power grid construction will bring a piece of the pie to the cable industry

Release time:

2018-11-13 10:52

Source:

The "Eleventh Five-Year" power grid development plan formulated by the State Grid Corporation of China shows that the company's total investment in power grid construction will reach about 850 billion yuan, and the total investment nationwide will exceed 1 trillion yuan. A new round of large power grid and big city network construction and transformation, and set off a new round of wire and cable industry expansion climax. All parts of the country are still on the high-voltage cross-linked cable production line in Shangma.

During the "Eleventh Five-Year Plan" period, the State Grid Corporation will add 60000 kilometers of 330kV and above transmission lines and 0.3 billion KVA of substation capacity. China Southern Power Grid will plan to build and put into operation 500kV AC line with 15651km substation capacity of 61.75 million KVA; Completed and put into operation 1225km 500kV DC line with 800 transmission scale of 3 million KW; Completed and put into operation 1438km kV DC line with 5 million KW transmission scale.

In the next five years, the scale of backbone network construction in China will increase significantly. The State Grid Corporation of China plans to build two UHV power transmission and transformation projects in the past two years. One is the Southeast Shanxi-Nanyang-Jingmen AC project; the other is the Yunnan Zhaotong-Guangxi Guilin-Guangdong Huidong 1000kV AC power transmission and transformation project. According to experts, the transmission capacity of UHV and trans-regional power grids will be 0.21 billion KW by 2020, of which 800kW DC is about 56 million KW and the other about 0.15 billion KW is composed of AC. By 2020, the UHV AC plus DC market will total 406 billion yuan, of which AC will be 256 billion yuan and DC will be 150 billion yuan.

It has been commented that the total output value of the top ten wire and cable manufacturers in the national wire and cable industry only accounts for about 10% of the whole industry, with low industrial concentration, insufficient economies of scale, and prominent structural contradictions in products. The wire and cable industry is greatly affected by the price increase of copper and aluminum. China's raw materials account for about 80% of the total cost of wire and cable, is currently facing a sharp rise in raw materials copper and aluminum, wire and cable industry negotiation ability is very weak.

Due to the serious shortage of investment in China's urban power grid construction, the power grid structure in most cities is very weak, and the aging phenomenon of power grid is extremely serious. According to the "Eleventh Five-Year Plan" of the State Grid Corporation of China, the planned investment in the construction and transformation of the urban network of 31 provincial capital cities and cities under separate planning in this period exceeds 400 billion yuan; the investment of China Southern Power Grid will account for about 1/4 of the State Grid. The combined total investment scale is about 500 billion yuan, and the average annual investment exceeds 100 billion yuan.

The construction of power grids in large cities requires tens of thousands of kilometers of medium and high voltage cross-linked cables. Therefore, cable companies with economic strength are planning to build medium and high voltage cross-linked cables to expand production capacity, and even build 500kV cross-linked VCV production lines.

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