Group 1 - The Zhejiang UHV AC Ring Network Project has received approval from the National Development and Reform Commission, with a total investment of approximately 29.3 billion yuan, and is expected to be completed and operational by 2029 [1] - In 2023, two UHV DC lines and three UHV AC lines have been approved, indicating a continuous advancement in domestic UHV line construction [1] - UHV lines, defined as transmission projects with voltage levels of 1000 kV AC or above and ±800 kV DC or above, are characterized by large transmission capacity, long transmission distances, and low losses, effectively enhancing grid transmission efficiency and the capacity for clean energy consumption [1] Group 2 - The construction demand for UHV lines remains high, with expectations for continued growth in grid investment during the 14th Five-Year Plan period, driven by the acceleration of the national unified electricity market and clear demand for inter-regional electricity interconnection and power delivery from the western regions [1] - The Electric Grid ETF (561380) tracks the Hang Seng A-Share Electric Grid Equipment Index, which selects listed companies primarily engaged in electric grid equipment-related businesses to reflect the overall performance of the electric grid equipment industry [1]

Core Viewpoint - The article highlights the ongoing development of China's ultra-high voltage (UHV) power transmission projects, emphasizing the increasing demand for electricity driven by AI advancements and the need for infrastructure upgrades in the global power system [2][3]. Group 1: UHV Projects and Investment - The Zhejiang UHV AC ring network project has received approval from the National Development and Reform Commission, with a planned completion and operation by 2029 and a total investment of approximately 29.3 billion yuan [2]. - In 2023, two UHV DC lines and three UHV AC lines have been approved, indicating a strong ongoing demand for UHV infrastructure, which is characterized by high capacity, long-distance transmission, and low losses [2]. - The construction of a unified national electricity market is accelerating, with clear demands for inter-regional power interconnection and electricity export from the western regions, suggesting a potential increase in non-UHV main network construction [2]. Group 2: Electricity Demand and Supply Chain Opportunities - From January to October 2023, the electricity consumption for internet data services in China increased by 43%, highlighting the surge in electricity demand driven by AI development [2]. - The global consensus that "the end of computing power is electricity" is becoming more pronounced, with Microsoft CEO Satya Nadella noting that the core bottleneck for the AI industry is the shortage of electricity [2]. - The persistent electricity shortages in North America and the urgent need for upgrades and expansions in global power systems may drive advancements in distributed and high-resilience power supply technologies, presenting systemic development opportunities for China's power grid equipment supply chain [2]. Group 3: Investment Outlook - Given the expected growth in domestic power grid construction investment and the opportunities for equipment exports against the backdrop of overseas electricity shortages, the outlook for the power grid sector remains positive [3]. - Investors are encouraged to pay attention to the power grid ETF (561380) as a potential investment opportunity [3].