The scale is 10 times that of last year! State Grid Corporation invested 2.7 billion yuan to build charging piles

This morning, State Grid Corporation of China (hereinafter referred to as "SGCC") held a video conference in Beijing to start the construction of new energy vehicle charging facilities projects in 2020, announcing the start of construction of 126 charging pile projects in 18 provinces (municipalities).

The meeting also revealed that the company plans to invest 2.7 billion yuan in charging pile construction this year, adding 78,000 charging piles to lead the development of charging facilities. The scale of new additions is about 10 times that of last year.

As of the close of the midday session on the 14th, the charging pile index compiled by Wind rose by 2.38%, with stocks such as State Grid Nanjing Automation, Shelleyt, Kstar, and AUTX leading the gains.

Charging infrastructure has the characteristics of large investment and long supply chain. It is an important guarantee for the development of new energy vehicle industry and an important part of emerging digital economy such as smart transportation and smart energy. Mao Weiming, chairman of State Grid Corporation of China, has stated in public on many occasions recently that State Grid Corporation of China will increase investment in the construction of charging facilities.

The new energy vehicle charging facility project initiated by State Grid Corporation has an investment scale of 360 million yuan. It will concentrate on building 126 projects in 18 provinces (municipalities), covering various types of charging infrastructure such as public, dedicated, community, and port shore power, to promote the larger-scale and higher-quality development of charging piles.

The project plans to build more than 2,000 charging piles with a total designed charging capacity of 109MW, which can provide charging services for about 12,000 commercial and passenger electric vehicles, directly drive automobile purchase consumption of 3 billion yuan, and stimulate demand for upstream and downstream industries such as power products, spare parts manufacturing, and after-sales services.

According to State Grid Corporation of China, this new energy vehicle charging facility project will innovatively carry out the construction of dedicated charging stations, and will further focus on centralized charging piles and fast charging piles to support the electrification innovation of special vehicles such as buses, logistics, taxis, and heavy trucks.

According to a 2020 charging facility development plan of State Grid Corporation of China obtained by the reporter, it is planned to complete the company's "14th Five-Year Plan" for charging facility development, promote the introduction of charging facility construction and operation subsidy policies, complete the development of two new generation charging prototypes, and release 15 technical standards.

In terms of basic support, State Grid Corporation plans to build a fast-charging network for expressways with a charging pile availability rate of over 97%. The number of newly added electric private cars covered by orderly charging in residential areas exceeds 10%. A fair and non-discriminatory grid connection service is implemented for the registration of newly built charging facilities, with a customer satisfaction rate of over 95%.

In terms of market-oriented operation, State Grid Corporation plans to build the most extensive vehicle networking platform in China, with the most comprehensive service functions, the most registered users, and the largest transaction flow, with a system availability rate of 99.9% and a real-time online rate of 95% for charging pile monitoring; a total of 1 million charging piles have been connected, with more than 2.6 million registered users, and a market share of more than 30% for charging services. The company's annual charging capacity of charging facilities exceeds 2.5 billion kWh, a year-on-year increase of 60%.

Just a few days ago, China Southern Power Grid Co., Ltd. announced that it plans to invest 1.2 billion yuan in charging infrastructure this year and 25.1 billion yuan in charging piles in the next four years, a ten-fold increase in scale.

Industrial Securities' electric power industry research report believes that as the "new infrastructure" is accelerated, the bidding and construction of charging piles will return to power grid companies, and the market share is likely to be concentrated in leading companies. The large-scale construction of charging piles in the next two years will bring huge impetus to the overall investment in the industry.

Guosheng Securities Research Report suggests that companies that seize the main line of the State Grid system and have core module production technology should be selected. In terms of charging facility operation, it is recommended to look for companies with first-mover advantage. For example, Guanghui Automobile, which has established an electric vehicle service company in a joint venture with the State Grid, TGOOD, the leading domestic charging pile operator, and NARI, the leading charging pile business company of the State Grid system.

A research report by Huatai Securities shows that starting from the charging pile manufacturing end and digging deep into the bidding opportunities for State Grid charging piles, high-power DC charging pile manufacturers will directly benefit, and the core power modules of charging piles will also benefit from the recovery of the charging pile market.

Editor: Chen Qijue