Key takeaways. Under the net-zero emission target, investment in clean energy has increased, and the proportion of wind power and photovoltaic power generation has shown an upward trend. The power grid is an important carrier of energy transition, and the high electrification rate of the terminal + the high proportion of new energy access on the power generation side continues to pose impacts and challenges to the power grid. From a global perspective, the investment in installed power capacity in '22 has increased by nearly 40% compared to '17, and has exceeded $750 billion. In contrast, investment in grid infrastructure has remained relatively stable, at around $300 billion per year. We expect global grid investment to be driven by energy transition trends to meet the growing demand for new energy.
Developed countries (Europe and the United States as examples): power grid infrastructure has existed for a long time, and the new energy transformation started earlier, and is currently facing the problem of new energy development forcing the transformation and upgrading of the power grid. Emerging markets (Asia, Africa and Latin America as examples): The demand for power grid construction is positively correlated with the growth of electricity consumption, driven by social and economic development, and the construction of power grids is mainly to ensure the reliability of power supply. In the context of the global energy transition, developing countries may also face the problems faced by developed countries.
China's power grid investment has gone through two stages, and it will enter the stage of new power system construction from 2021. Looking back at the past investment, China's power supply investment and power grid investment have shown alternating growth (power grid expansion - three-round UHV construction - new energy power system). In the future, power grid investment is one of the important means of counter-cyclical adjustment, driving the development of the upstream and downstream industrial chain at the same time, but also to ensure the growing demand for electricity, with the social electricity consumption and the proportion of new energy installed capacity continues to increase, we judge that the follow-up power grid investment is expected to accelerate.
Investment strategy. In the context of global new energy transformation, the power grid bears an important mission, and investment opportunities for power equipment are surging.
The above is only used as a teaching case and does not constitute investment advice, and is for reference only.
Reference**: January 5, 2024 People's livelihood** Depth of the power grid industry: The power grid opens a new chapter and rebuilds a new engine for going to sea.
Special Disclaimer: The content of the article is for reference only and does not constitute investment advice. Investors act accordingly at their own risk.
This article is edited by investment consultant: Shang Yaxiong a1290623030001.