China's transformer overseas business is in a period of growth opportunities
"The chip shortage may have passed, but artificial intelligence and electric vehicles are expanding at such a rapid rate that the world will face tight supply of electricity and transformers next year." Recently, Musk said at the "Bosch Connected World 2024" conference Fan said it attracted widespread market attention.
"The chip shortage may have passed, but artificial intelligence and electric vehicles are expanding at such a rapid rate that the world will face tight supply of electricity and transformers next year." Recently, Musk said at the "Bosch Connected World 2024" conference Fan said it attracted widespread market attention.
In this regard, Hony Yuanfang Fund interprets that with the transformation of the global energy structure and the continued growth of power demand, power transformers, as one of the core equipment of the power system, are currently facing insufficient supply of power transformation in overseas markets.
"As far as the U.S. market is concerned, the transformers currently in service in the United States are seriously aging, and about 70% of the distribution transformers are more than 25 years old. In recent years, the U.S. has seen a substantial increase in new energy power generation, a surge in AI data center servers, and at the same time, the transportation sector has Electrification requires corresponding upgrades and expansions of transmission and distribution networks.” Hony Yuanfang Fund emphasized that Musk began to predict that the United States would experience a shortage of chips, a shortage of transformers, and then a shortage of electricity in the future as early as 2023.
Hony Yuanfang Fund said that from an industry perspective, the shortage of local production capacity in the United States and Europe coupled with the demand for power infrastructure in countries along the Belt and Road, Chinese transformer companies’ overseas business is in a period of growth opportunities. According to the China General Administration of Customs, China's cumulative export volume of transformers will reach 2.74 billion units in 2023, with export value reaching US$5.93 billion, a year-on-year growth of 18.4%.
"Domestically, in early March, the National Development and Reform Commission and the National Energy Administration formulated the "Guiding Opinions on the High-Quality Development of Distribution Networks under the New Situation." For the first time since the dual carbon goals were proposed, the National Development and Reform Commission and the National Energy Administration issued a formal document on the new Under the current situation, the development of distribution network has put forward specific requirements. The country is also facing the situation of large-scale grid integration of distributed new energy and the accelerated connection of electric equipment with large short-term power demand such as charging piles to the distribution network. From the perspective of the capital market, power equipment. Although it is a traditional industry, it is also facing new development opportunities in the environment of changes in energy structure and load demand," Hony Yuanfang Fund believes.
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As the vanguard of my country's "double carbon" goal, new energy is the main force in solving a series of challenges in my country's energy development. How the energy industry can promote the implementation of major deployments, properly handle the relationship between the overall situation and the local situation, the government and the market, energy development and conservation utilization, and further promote China's new energy enterprises to become the main force in the global energy transformation has become a hot topic during this year's two sessions.
