The new round of rural power grid reconstruction will start to invest 300 billion yuan in the next three years

On the 5th, Premier Wen Jiabao of the State Council presided over the executive meeting of the State Council and decided to implement a new round of rural power grid reconstruction and upgrading projects. The meeting proposed to increase funding support. The capital of the rural grid upgrading and upgrading project in the central and western regions is mainly arranged by the central government. We will continue to implement a policy of adding 2 cents per kilowatt-hour of electricity, which will be earmarked for the repayment of loans for the construction and upgrading of rural power grids.

Insiders pointed out that the grid investment gradually shows the characteristics of “big two, small in the middle”, that is, the two “heads” of UHV investment and rural power grid and urban distribution network investment of about 110KV. Since the main network (220kv-750kv) has undergone large-scale construction in recent years, investment will slow down, and grid investment will be tilted toward UHV (800kv DC and 1000kv AC) and 110kv and below distribution networks.

The launch of a new round of rural power grid reconstruction project will greatly stimulate investment in the distribution equipment sector below 110KV, and Changyuan Group, Beijing Career, Huayi Electric, Credit Electric, and Xuji Electric will directly benefit.

Feng Qiang, a researcher of Xiangcai Securities's power equipment and new energy industry, said that the rural power grid transformation will drive the demand for power grid equipment below 110KV, and the rural power grid equipment will become a bright spot in future power grid investment. The rural power grid equipment includes transformers, switches, and RMUs. , Circuit breakers, insulators, etc., It is recommended to pay attention to China Xidian, Changyuan Group, Guodian Nanzi and other companies.

The executive meeting of the State Council proposed that in the “Twelfth Five-Year Plan” period, the rural power grids in the whole country should be generally reconstructed, rural households' electricity consumption should be well protected, and problems in agricultural production and power supply should be basically solved. Basically completed construction is safe, reliable, energy-saving and environmentally friendly, and technologically advanced. Regulate the new rural power grid.

The meeting put forward five requirements: First, we must carry out an overall transformation of the rural power grid in unreconstructed areas in accordance with the new construction standards and requirements. Secondly, upgrade the rural power grid that has been reformed but still has the problems of insufficient power supply capacity and low power supply reliability. Third, according to local conditions, the power supply facilities for irrigation of farmland in major grain-producing areas, rural economic crops and processing of agricultural and sideline products, and aquaculture of livestock and poultry shall be transformed to meet the needs of agricultural production and use of electricity. Fourth, in accordance with the requirements for the overall planning of urban and rural development, and on the basis of realizing the same price for urban and rural residents using the same electricity network, the urban and rural areas will use the same price for all kinds of electricity and the same network to further reduce the rural electricity consumption burden. Fifth, we must deepen the reform of the rural power system, completely abolish the “host management system” of county-level power grid companies, and establish institutional mechanisms conducive to the healthy development of rural power.

Founder Securities: A new round of rural power grid transformation started promising six shares

According to the 2010 national rural power grid transformation and upgrading work conference, this round of rural power grid reconstruction will last for three years. In 2010, the state will allocate 12 billion yuan of fiscal funds for the transformation of rural power grids. The annual input to rural power grids will not be lower than the previous year in the next three years. . It is estimated that the investment scale will reach 200 billion in three years. The focus of the reform and upgrading implementation is the rural medium- and low-voltage distribution network, and its increased investment will benefit the entire power equipment industry, especially the distribution equipment manufacturers with power distribution capacity of less than 110,000 kV. We are optimistic about low-voltage distribution appliances leading Zhengtai Electric (601877), digital power plant equipment manufacturer Siyuan Electric (002028), Xu Ji Electric (000400), amorphous energy transformer manufacturer confidence electric (600517), and electrical end information collection equipment Manufacturers Ke Lu Electronics (002121), Hao Ning Da (002356), etc., suggest investors pay active attention.

Power Equipment: Investment in the Twelfth Five-Year Power Transmission Equipment Faucet

We expect that the investment in high-end grid investment (UHV and UHV) during the 12th Five-Year Plan will reach 750 billion yuan, 2.5 times that of the 11th. The total power grid investment in the country will reach 2.5 trillion yuan, a substantial increase over the 11th five-year period. The increase will come entirely from UHV construction investment. The UHV has to provide support for the UHV, and due to the construction of the northwest grid, the investment will not decrease during the 11th five-year period. Therefore, the construction of high-end network racks will be the biggest opportunity for development of the power equipment sector in the next five years.

The power transmission capacity, ie, grid construction, is the core theme of the 12th Five-Year Power Grid Investment. It is the most closely linked link with the major themes of energy optimization and energy structure adjustment in power grid construction and is the most urgent mission for power grid companies. . In the next five years, the total number of transmission investment links will be 358.2 billion yuan, of which transmission cables, towers, and insulators will account for over 50% of the total, and will be ranked according to the average annual contribution of EPS. Sanpu Pharmaceutical (Far East cable), Qixing Tower, and Chuangyuan Technology are recommended. .