UHV takes the "new infrastructure" express train, but whether the project construction will be accelerated remains uncertain

Recently, the Standing Committee of the Political Bureau of the CPC Central Committee clearly pointed out that it is necessary to speed up the construction of new infrastructure such as 5G networks, UHV, and new energy vehicle charging piles (hereinafter referred to as "new infrastructure"). It is generally believed in the industry that UHV has caught the "new infrastructure" express train and will restart large-scale construction.

(Text丨Reporter Su Nan)

The "main event" to stimulate the economy

Views such as "UHV is a booster for economic development", "'New infrastructure' will trigger the explosion of UHV", and "The scale of UHV project construction this year will exceed expectations" have now become a general consensus.

Looking back at the investment history of the State Grid, whenever it is necessary to stimulate economic growth, UHV becomes the top priority of the State Grid's investment. The China Electricity Council has done statistics, and the proportion of investment in UHV project construction in infrastructure is relatively large, about 45%. This shows that UHV construction may become the main focus of "new infrastructure".

"In addition to the manufacturing of equipment such as high-voltage electrical switchgear, converter valves, power electronics, and new materials, UHV key technologies can also rely on 5G to promote the development of high-tech technologies such as the Internet of Things, chips, software, and artificial intelligence, which is in line with my country's current industrial transformation and upgrading." Zhao Ling, a gold medal investment consultant at Jufeng Investment Consulting, believes that UHV projects are expensive and can drive performance growth in many fields such as equipment manufacturing, technical services, construction and installation.

Deng Yongkang, an analyst at Essence Securities, believes that power grid infrastructure has always been a ballast and booster for stabilizing the economy, especially UHV, which has a more significant effect on driving economic development. Taking the two ±800 kV UHV projects of Ximeng-Taizhou and Shanghai Temple-Shandong as examples, the "two direct" projects were completed at the end of 2017 with a total investment of 47.4 billion yuan, increasing the output value of power transmission and transformation equipment manufacturing by 21.3 billion yuan, directly driving investment in power supply and other related industries by about 118.5 billion yuan, creating 33,000 jobs, and driving GDP growth by 15.2 billion yuan each year.

This year, State Grid has made a clear plan to approve seven UHV lines within the year and start construction of at least three, and the total investment in UHV is expected to be around 140 billion yuan in the next two years. "At present, the company has initially arranged an investment of 33 billion yuan in UHV construction projects throughout the year, which can drive social investment of 65.4 billion yuan," said Mao Weiming, chairman of State Grid.

Whether the project construction will be accelerated remains uncertain

In the eyes of the outside world, the epidemic has acted as a catalyst for UHV, rapidly improving the level of UHV construction, and the slowed-down UHV projects will usher in a construction climax. However, it cannot be ignored that many sensitive points and complicated procedures are restricting the speed of UHV project construction.

"There are many variables in speeding up the construction of UHV in Sichuan Province." A relevant person in charge of the State Grid Sichuan Electric Power UHV Command revealed to reporters that, for example, the approval process for the Baihetan-Jiangsu project has been initiated, and the feasibility study for the Baihetan-Zhejiang project is underway. However, the approval process for the Baihetan-Jiangsu project has been initiated for more than half a year, but it has not been approved. "This is mainly because there are many sensitive points involved, and many base stations on our lines need to be set up in the ecological red line protection zone of Sichuan Province. In addition, expert review and approval take a long time. The approval of a line requires 17 documents to be approved, and many procedures are approved in series. If one approval is not obtained, the next approval cannot be carried out."

It is also reported that the construction of the ±800 kV UHV DC transmission projects in Yazhong-Jiangxi, Baihetan-Jiangsu, and Baihetan-Zhejiang has covered many mining rights. The owners of prospecting rights have treated the State Grid as "Tang Monk's meat", and many mine owners have asked for unreasonable prices. One owner of prospecting rights in Yunnan asked the State Grid for 52 million yuan as a "bribe".

“In Yunnan province alone, there are 28 private enterprises with prospecting rights,” said a State Grid insider who was involved in the demolition.