Power Transformer Demand Soars

From January to July this year, the State Grid completed grid investment of 236.4 billion yuan, a year-on-year increase of 19%. Benefiting from the increase in investment in the power grid, the installed capacity of new energy continues to increase, and the electrical equipment industry continues to boom.

In recent years, due to the large increase in the installed capacity of new energy sources such as wind power and photovoltaics, the investment demand for power transmission and transformation and grid transformation has increased greatly. From January to July this year, the State Grid completed grid investment of 236.4 billion yuan, a year-on-year increase of 19%. Benefiting from the increase in investment in the power grid, the installed capacity of new energy continues to increase, and the electrical equipment industry continues to boom. The Power Transformer production capacity has been in short supply since last year, so the production capacity has been climbing since the end of last year, and the orders have been accumulated until a few months later. In the production workshop of an electrical equipment company in Shanghai, the assembly and commissioning teams are lined up, and 32 seats are full. According to reports, the on-load tap-changer produced by the company is the core component of the transformer. Additional orders from customers are pouring in, and monthly shipments are currently hitting a new high.

Institutional analysts pointed out that UHV Power Transformer has the advantages of large capacity, long distance, high efficiency, low loss, and low unit cost. Considering the construction cycle of UHV and the disturbance of the epidemic in the first half of this year, the number of approved construction lines from the second half of this year to next year may be the peak period. UHV has high industry barriers, and the leading supplier of main equipment has a solid position, which will benefit from the rapid implementation of UHV Power Transformer projects and the expansion of demand for main equipment.