Investment Rating - The report maintains a "Buy" rating for the industry, emphasizing the potential of "算电协同" (computing and electricity collaboration) as a new infrastructure category [9][10]. Core Insights - The concept of "算电协同" has been officially included in the government work report, marking it as a significant direction for new infrastructure development. This indicates a shift from local trials to a national strategic deployment [2][14]. - The report highlights the rapid growth of intelligent computing power in China, projected to reach 725.3 EFLOPS by 2024, a 74.1% increase year-on-year, significantly outpacing general computing power growth [2][14]. - The dual carbon goals are reinforcing the value of green electricity, with a focus on constructing a new power system and promoting the application of renewable energy [5][17]. Summary by Sections Government Work Report - The government work report emphasizes the importance of "算电协同" in building a new type of infrastructure and outlines plans for zero-carbon parks and factories, as well as the development of smart grids and new energy storage [2][14]. - The report sets ambitious carbon reduction targets, aiming for a 17% reduction in carbon emissions per unit of GDP during the 14th Five-Year Plan period [9][17]. Industry Trends - The electricity sector is experiencing structural changes, with increasing demand from data centers for green energy, which is driving upgrades in the power system [4][16]. - The report notes that the pricing and capacity value of electricity are being adjusted, making low-cost and high-green energy parks more attractive for data center electricity needs [4][16]. Policy Developments - Continuous policy support for "算电协同" has been observed, with initiatives aimed at establishing a comprehensive computing infrastructure by the end of 2025 [3][15]. - The report outlines several major projects under the 14th Five-Year Plan, including the development of new energy bases and zero-carbon initiatives [18]. Investment Recommendations - The report suggests focusing on companies involved in "算电协同," recommending specific firms such as 涪陵电力 (Fuling Power) and 金开新能 (JinKai New Energy) for investment [9][10]. - It also highlights the potential of traditional thermal power companies to adapt and benefit from the evolving energy landscape, suggesting firms like 华能国际 (Huaneng International) and 国电电力 (Guodian Power) as key players [9][10].

Investment Rating - The report maintains a "Buy" rating for key companies in the construction and energy sectors, including China Energy Engineering, China Power Construction, and others [12][30]. Core Insights - The report emphasizes the urgent need for energy security in China due to geopolitical tensions and reliance on imported oil and gas, with a forecasted import dependency of 73% for oil and 41% for natural gas by 2025 [1][10]. - The 2026 "Two Sessions" highlighted energy security as a fundamental national security project, setting a target for comprehensive energy production capacity to reach 5.8 billion tons of standard coal [2][16]. - The report identifies three key investment directions under the "energy self-sufficiency" framework: new power system construction, green fuels, and coal chemical industry development [11][29]. Summary by Sections New Power System Construction - The report outlines a strategic push for building a new power system, including smart grid development and new energy storage, with significant investments planned by the State Grid and Southern Power Grid [22][25]. - Key companies to watch include China Energy Engineering, which holds a leading position in energy integration services, and China Power Construction, which dominates hydropower and renewable energy projects [22][23]. Green Fuels - The establishment of a national low-carbon transition fund aims to promote hydrogen and green fuel industries, with a focus on scaling up hydrogen production and sustainable aviation fuels [8][26]. - China Energy Engineering is highlighted for its proactive approach in the hydrogen market, with over 50 projects in various stages of development [8][26]. Coal Chemical Industry - The report notes the increasing importance of modern coal chemical processes, such as coal-to-oil and coal-to-gas, to enhance energy self-sufficiency amid rising oil prices [9][27]. - Recommended companies in this sector include China National Chemical Corporation and Donghua Technology, which are positioned to benefit from increased investment in coal chemical projects [9][27].

Investment Ratings - The report maintains a "Buy" rating for both the power equipment and environmental protection sectors [1]. Core Insights - The government work report highlights key areas such as carbon dual control, hydrogen energy, and collaborative electricity computing, with the latter becoming a current market focus. There is some divergence regarding the targets for carbon emissions reduction during the 14th Five-Year Plan and by 2026, indicating a need for more effort to achieve these goals [3]. - The report expresses optimism about hydrogen energy, particularly in hydrogen, ammonia, and methanol, suggesting that these areas will present ongoing investment opportunities as more projects are expected to materialize throughout the year [3]. - The concept of collaborative electricity computing is introduced as a strategic task for the 14th Five-Year Plan, encompassing power operation, source-grid-load-storage, and virtual power plants [3]. Summary by Sections North America Power Supply - The report notes a power shortage in North America, with major tech companies committing to self-supply power for their data centers, indicating a strong trend that may lead to increased volatility in high-value stocks [4]. Investment Opportunities - The report suggests focusing on power operators, highlighting low PB valuations and safety margins, with recommended stocks including JinkoSolar, Gansu Energy, and others [4]. - It emphasizes the potential for microgrids and virtual power plants to continue developing, with suggested stocks like Guoneng Rixin and Anke Rui [4]. - The report also mentions the favorable outlook for space photovoltaics, European offshore wind, and energy storage, which require ongoing monitoring [4]. Energy Storage - The report discusses the impact of domestic energy storage capacity pricing policies and the ongoing power shortages in the U.S., suggesting that North American storage stocks may rebound significantly [6]. - It highlights the UK's "Warm Homes Plan," which aims to install 3 million solar systems by 2030, benefiting the energy storage market [6]. Wind Power - According to the National Energy Administration, China's onshore wind power capacity is expected to grow by 9.68% in 2024, while offshore wind capacity is projected to decrease by 40.85% [7]. - The report indicates a significant increase in wind turbine bidding capacity, with a 90% year-on-year growth expected in 2024 [11]. Steel Prices - Current steel prices as of March 6, 2026, are reported, with medium-thick plate prices at 3,382 CNY/ton and rebar prices at 3,312 CNY/ton [14]. Investment Suggestions - The report recommends focusing on European offshore wind and complete machine directions, as the industry is expected to see significant growth from 2026 to 2030 [16].

Group 1 - The report indicates that the U.S. is currently experiencing a phase of loose monetary policy but tight credit conditions, with a strong dollar being a method for short-term resolution [2][3] - Geopolitical conflicts are expected to drive up oil prices in the medium term, benefiting the U.S. with strong dollar and capital inflows, although the weakening military strength of the U.S. may harm dollar credibility [3][10] - In the short to medium term, the report suggests allocating investments towards broad energy dividends and U.S. capital goods inflation, while recommending an increase in insurance and leading Chinese heavy asset stocks once the dollar begins to depreciate [3][10] Group 2 - The report highlights a significant downturn in the U.S. employment market, with February's non-farm payrolls showing a decrease of 92,000 jobs, contrasting sharply with market expectations of an increase of approximately 55,000 jobs [8][12] - The report notes that job losses are widespread across various sectors, including education, healthcare, and construction, indicating a broader economic slowdown [9][12] - The report emphasizes that the weakening non-farm employment data has raised expectations for interest rate cuts, while the U.S. maintains a loose monetary policy despite a contraction in commercial credit [10]

Investment Rating - The industry investment rating is not explicitly stated in the provided documents, but it can be inferred that there is a positive outlook based on the focus on growth areas such as carbon reduction and renewable energy integration [7]. Core Insights - The government work report emphasizes the dual carbon goals, focusing on zero-carbon parks, computational power integration, and circular economy initiatives. By 2025, it aims for a 5% reduction in carbon emissions per unit of GDP and an increase of 370 million kilowatts in renewable energy installations, with non-fossil energy accounting for nearly 40% of total power generation [2]. - The electricity sector is experiencing a shift driven by three main factors: the integration of computational power by electricity companies, validation of energy security and dual carbon goals during the Two Sessions, and a market adjustment since November 2022 leading to low public holdings [3]. - The coal sector is expected to benefit from demand elasticity and supply constraints, with a projected increase in electricity consumption and coal demand due to geopolitical tensions and export restrictions [4]. Summary by Sections Government Policy and Goals - The report outlines specific targets for 2025 and 2026, including a 3% reduction in energy consumption per unit of GDP and a 3.8% reduction in carbon emissions per unit of GDP. It highlights the importance of pollution control and the development of a green low-carbon economy [2]. Electricity Sector Dynamics - The report identifies three driving factors for the electricity market: the strategic moves by power companies towards computational power, the reaffirmation of energy policies during the Two Sessions, and the current low valuation of the sector following a market adjustment [3]. Coal Market Outlook - The coal market is highlighted for its demand elasticity, with expectations of increased consumption driven by low base effects and geopolitical factors affecting supply. The report notes a recent price increase for thermal coal, indicating a potential upward trend in the market [4]. Investment Opportunities - The report suggests focusing on specific timelines for investment opportunities: current coal dynamics, upcoming quarterly reports for thermal power, and monitoring hydropower during the flood season. Key stocks to watch include Yanzhou Coal Mining, China Shenhua Energy, and Huaneng Power International [5].

Investment Rating - The report maintains a "Positive" outlook for the utility sector [8] Core Insights - The report emphasizes the need for price reform in public utilities and highlights the synergy between computing power and electricity to support the development of the AI industry [8] - The government work report reiterates the importance of advancing the construction of a unified national market and gradually promoting price reforms in public utilities and public services [8] - The utility sector is expected to benefit from the revaluation of physical assets amid macroeconomic changes, with the Shenyuan Utility Index rising by 3.4% during the week, outperforming the CSI 300 Index by 4.5 percentage points [8][48] Summary by Sections Industry Overview - The report discusses the anticipated stable growth in electricity demand and the gradual increase in the installed capacity of renewable energy sources [8] - It notes that the price of natural gas has surged due to geopolitical tensions, which may lead to higher domestic gas prices than previously expected [8] Investment Recommendations - The report recommends investing in the utility sector, highlighting the following: - The trend of low interest rates and policy encouragement for long-term capital investment [8] - The necessity for further market-oriented price reforms to support the complex new power system construction [8] - Specific stock recommendations include: - Thermal Power: JianTou Energy, Huadian International, Guodian Power, Huaneng International, and WanNeng Power [8] - Gas: Shouhua Gas and Xinneng Gas [8] - Hydropower: Yangtze Power, Guotou Power, Guigang Power, and ChuanTou Energy [8] - Nuclear Power: China General Nuclear Power [8] - Wind and Solar: Longyuan Power [8] Market Dynamics - The report tracks recent trends in electricity prices, noting a decline in spot electricity prices in Guangdong and Shanxi [11][13] - It highlights the fluctuations in coal prices, with a slight decrease in port coal prices and an increase in port inventories [16][26] - The report also notes significant increases in natural gas prices, both domestically and internationally, due to supply chain disruptions [35][37]

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The government work report for 2026 sets a target to reduce energy consumption per unit of GDP by approximately 3.8%, an increase from the previous target of 3% in 2025. Key initiatives include fostering future energy development, quantum technology, and implementing large-scale intelligent computing clusters [15][16]. - The report emphasizes the importance of establishing a new power system, accelerating the construction of smart grids, and expanding green electricity applications. The focus remains on achieving carbon peak and carbon neutrality goals, with a closer integration of technology and energy [6][15]. - The power sector is characterized as a defensive asset in the AI era, with attributes such as high barriers to entry, long project lifespans, and stable cash flows. The rising coal prices are expected to positively influence electricity pricing, leading to a restructuring of the thermal power business model towards a more utility-like approach [6][15]. - The report highlights several companies to watch, including Huaneng International, Huadian International, and China Power, which are expected to benefit from the ongoing transformation in the utility sector [6][7]. Summary by Sections Section 1: Two Sessions Highlights - The focus is on cultivating future energy and the first mention of computing power and electricity synergy. The government aims to reduce energy consumption per unit of GDP and promote green low-carbon economic development [15][16]. Section 2: Weekly Review - Local governments are implementing electricity market reforms, with various provinces releasing their "14th Five-Year" plans. For instance, Qinghai Province is promoting large-scale solar thermal power development [22][23]. Section 3: Industry High-Frequency Data Tracking - Recent data shows a steady increase in coal prices, with the Qinhuangdao 5500 kcal thermal coal price rising to 755 CNY/ton as of March 6, 2026. This reflects a slight increase of 0.67% compared to the previous week [27][29].

Group 1: Market Trends - The trading heat of hot themes has rebounded, with power, energy, and aerospace themes continuing to show strength, while technology themes have overall retreated. The average daily trading volume of hot themes increased to 1.049 billion yuan, with an average turnover rate of 3.99% [6][7] - The structural differentiation has intensified, with the Middle East conflict and increased domestic demand expectations catalyzing continuous increases in power grid, oil and gas services, methanol, and aerospace themes over the past two weeks [6][8] Group 2: Energy Security - Geopolitical conflicts are disrupting key energy supplies, prompting policies to focus on building a new energy system and nurturing future energy sources. The ongoing conflict in the Middle East has led to a supply crisis for key energy resources, with multiple commercial vessels attacked in the Strait of Hormuz, increasing transportation risks [16][21] - The government work report emphasizes the formulation of a national energy construction plan, aiming to build a new power system, accelerate smart grid construction, and develop new energy storage and green hydrogen [16][21] Group 3: AI Applications - The deployment of OpenClaw on Tencent Cloud has been highly successful, with the execution capabilities of AI agents significantly improving, which is expected to accelerate the application ecosystem of AI products. The government work report highlights the creation of a new intelligent economy and the promotion of large-scale commercial applications of AI in key industries [17][31] - The domestic large model companies are expected to benefit from increased token usage, while internet platform companies with strong user engagement and capital expenditure are also poised for growth [17][34] Group 4: Domestic Computing Power - Policies emphasize the implementation of large-scale intelligent computing clusters and the synergy between computing and electricity as part of new infrastructure projects. The government work report outlines the construction of major projects in integrated circuits, satellite internet, and domestic large aircraft [18][32] - The performance of mature AI application products is expected to stimulate user demand, leading to increased capital expenditure in domestic computing power-related sectors [18][41] Group 5: Commercial Aerospace - The government work report stresses the development of aerospace as a new pillar industry, with the Zhuque-3 rocket scheduled for recovery tests in the second quarter of 2026. This is expected to accelerate the commercialization of private rockets [20][31] - Various local governments are deploying tasks for the development of the commercial aerospace industry, with significant investments planned for infrastructure and supporting industries [20][31]

Investment Rating - The report maintains a "Positive" outlook for the utility sector [8] Core Views - The report emphasizes the need for price reform in public utilities and highlights the synergy between computing power and electricity to support the development of the AI industry [8] - The construction of a nationwide unified electricity market system is seen as an inevitable direction for China's electricity market reform, with various power sources expected to benefit from this development [8] - The report notes a significant increase in natural gas prices due to geopolitical tensions, which may lead to higher domestic upstream gas source asset values [8] - The utility sector has shown a rebound since the Spring Festival, with the Shenyin Wanguo Utility Index rising by 3.4%, outperforming the CSI 300 Index by 4.5 percentage points [8] Summary by Sections Investment Recommendations and Targets - The report recommends a positive investment stance on the utility sector, citing low interest rates and policy encouragement for long-term capital investment as key factors [8] - Specific stock recommendations include: - Thermal Power: Jiantou Energy (000600, Buy), Huadian International (600027, Buy), Guodian Power (600795, Buy), Huaneng International (600011, Buy), and Waneng Power (000543, Buy) [8] - Gas: Shouhua Gas (300483, Not Rated), Xintian Gas (603393, Not Rated) [8] - Hydropower: Yangtze Power (600900, Not Rated), Guotou Power (600886, Not Rated), and others [8] - Nuclear Power: China General Nuclear Power (003816, Not Rated) [8] - Wind and Solar: Longyuan Power (001289, Not Rated) [8] Industry Dynamics Tracking - Electricity prices in Guangdong and Shanxi have seen a year-on-year decline, with Guangdong's average clearing price at 312 RMB/MWh, down 12.6% [11] - Domestic and international natural gas prices have surged, with the Dutch TTF gas price increasing by 67.0% week-on-week [35] - Coal prices have shown mixed trends, with Qinhuangdao's Q5500 coal price at 743 RMB/ton, down 1.1% week-on-week [16] - The report notes a rise in coal inventories at ports, with Qinhuangdao's coal inventory increasing by 12.3% week-on-week [26] Market Performance - The utility sector has outperformed the broader market, with the Shenyin Wanguo Utility Index rising 3.4% compared to declines in the CSI 300 and Wind All A indices [48] - Sub-sector performance highlights include hydropower leading with a 4.7% increase, followed by thermal power at 3.4% [50]

Report Industry Investment Rating No information provided in the text. Core Viewpoints - Global electricity consumption has been increasing in tandem with economic growth, with an average growth rate of 3.9% over the past five years. China's high - speed growth in electricity consumption is a key factor in the rise of global electricity consumption. By the end of 2025, global electricity consumption reached 30,678 TWh, a year - on - year increase of 3%. China's total social electricity consumption reached 10,360 TWh, ranking first in the world [3]. - In the next five years, global electricity consumption is expected to grow at an average rate of 3.5% - 4%. By 2030, global electricity consumption may exceed 36,000 TWh, an increase of about 6,000 TWh compared to 2025. China's electricity consumption is expected to grow at a rate of 5%, reaching over 13,000 TWh by 2030, an increase of about 2,800 TWh compared to 2025. The electricity consumption of the US and Europe is expected to grow at a rate of 2%. By 2030, the US electricity consumption may exceed 5,000 TWh, an increase of about 470 TWh compared to 2025, and Europe's electricity consumption may exceed 5,300 TWh, an increase of about 580 TWh compared to 2025 [4]. - The large - scale development of AI technology relies on the continuous expansion of data centers, which in turn depend on the power system. By the end of 2024, global data center electricity consumption reached 416 TWh. By 2030, global data center electricity consumption is expected to reach 950 TWh, with an average growth rate of over 21%. China's data center electricity consumption is expected to reach 277 TWh by 2030, accounting for 29% of the global total, with an average growth rate of over 28% [4][5]. - The global new - energy vehicle market has expanded significantly. By the end of 2025, global new - energy vehicle sales reached 2.054 million, a year - on - year increase of 19.2%. By 2030, global new - energy vehicle sales are expected to reach 4 million, and electric vehicle electricity consumption is expected to reach 790 TWh, nearly tripling compared to 2025. China is in a dominant position in the global new - energy vehicle market. By 2030, China's new - energy vehicle sales are expected to reach 2.12 million [6][7]. - The global industrialization process is advancing. In 2024, global industrial added value reached $28.9 trillion, a year - on - year increase of 1.3%, and industrial electricity consumption exceeded 11,000 TWh, a year - on - year increase of 4%. By 2030, global industrial electricity consumption is expected to increase to over 12,800 TWh, with an average growth rate of 2.5%. China's industrial electricity consumption is expected to increase to over 8,200 TWh by 2030, accounting for over 60% of global industrial electricity consumption [8][9]. - The global electrification rate has been increasing. In 2025, the global electrification rate reached 21%. By 2030, the global electrification rate is expected to increase to over 25%. China's electrification rate is expected to reach 35% by 2030 [10]. Summary by Directory I. Economic Prosperity Boosts Electricity Consumption, and China Becomes the Primary Growth Driver 1.1 Global Electricity Consumption Keeps Growing, and China's Electricity Demand Far Exceeds that of Europe and the US - Global electricity consumption has increased in line with economic growth, with an average growth rate of 3.9% over the past five years. By the end of 2025, China's electricity consumption accounted for one - third of the global total, exceeding the combined electricity consumption of the US, Europe, and Japan. In 2025, global electricity consumption reached 30,678 TWh, a year - on - year increase of 3% [18]. - China's electricity consumption scale has achieved remarkable results. By the end of 2025, China's total social electricity consumption reached 10,360 TWh, with the secondary industry's electricity consumption reaching 6,629 TWh, accounting for 64% of the total. The tertiary industry and residential electricity consumption have maintained high - speed growth [20]. - The US and Europe play a key role in global electricity consumption growth, accounting for 30% of the global total. However, the proportion of developed countries' electricity consumption is decreasing. By the end of 2025, Europe's annual electricity consumption reached 4,807 TWh, a year - on - year increase of 0.2%, accounting for 15.7% of the global total. The US's annual electricity consumption reached 4,537 TWh, a year - on - year increase of 3.1%, accounting for 14.8% of the global total [30][32]. 1.2 New and Old Economic Models Work Together to Promote the Increase of Electricity Consumption - In the future, global electricity consumption is expected to continue to grow steadily, with an average growth rate of 3.5% - 4% in the next five years. By 2030, global electricity consumption may exceed 36,000 TWh, an increase of about 6,000 TWh compared to 2025 [41]. - China is the main force in global electricity consumption. In the next five years, China's electricity consumption is expected to grow at a rate of 5%. By 2030, China's electricity consumption may exceed 13,000 TWh, an increase of about 2,800 TWh compared to 2025. The electricity consumption of the US and Europe is expected to grow at a rate of 2%. By 2030, the US electricity consumption may exceed 5,000 TWh, and Europe's electricity consumption may exceed 5,300 TWh [42]. II. The AI Market Has Great Prospects, and the Power System Provides Underlying Support 2.1 The AI Market Is Expanding Rapidly, and Data Centers Consume a Huge Amount of Electricity - The large - scale development of AI technology depends on the continuous expansion of data centers. Servers account for 60% of data center electricity consumption, cooling systems account for 20%, storage systems account for 5%, network equipment accounts for 5%, and other infrastructure accounts for 10%. 80% of AI electricity consumption is concentrated in the operation stage, and 20% is in the manufacturing stage [50][51]. - By the end of 2024, the global data center electricity consumption reached 416 TWh. The US data center electricity consumption reached 183 TWh, accounting for 44% of the global total; China's data center electricity consumption reached 102 TWh, accounting for 25% of the global total; and Europe's data center electricity consumption reached 68 TWh, accounting for 16% of the global total [54]. 2.2 The AI Market Has Great Growth Potential, and the Sino - US Competition Drives Electricity Demand - The global AI software market is expected to grow from about $174.1 billion currently to over $460 billion by 2030. By 2030, global data center electricity consumption is expected to reach 950 TWh, with an average growth rate of over 21% [57][60]. - China is expected to see a large - scale growth in the AI market and electricity consumption. By 2030, China's data center electricity consumption is expected to reach 277 TWh, accounting for 29% of the global total, with an average growth rate of over 28%. The US data center electricity consumption is expected to reach 426 TWh, accounting for 45% of the global total, with an average growth rate of over 22%. Europe's data center electricity consumption is expected to reach 113 TWh, accounting for 12% of the global total, with an average growth rate of over 11% [60][61]. III. New - Energy Vehicles Create New Growth, and the Scale of Electricity Consumption Is Expected to Increase 3.1 New - Energy Vehicles Increase Electricity Consumption, and China Dominates the Market - In recent years, the rise of new - energy vehicles has changed the pattern of the traditional automotive industry and increased electricity consumption. In the past five years, global new - energy vehicle sales have increased by more than six times. By the end of 2025, global new - energy vehicle sales reached 2.054 million, a year - on - year increase of 19.2%. By the end of 2024, global electric vehicle electricity consumption reached 180 TWh, more than four times that in 2020 [68]. - China is in a dominant position in the global new - energy vehicle market. In 2025, China's new - energy vehicle sales reached 1.649 million, a year - on - year increase of 28.2%, accounting for 80% of the global total. Europe's new - energy vehicle sales reached 392,000 in 2025, a year - on - year increase of 32.1%. The US new - energy vehicle sales reached 150,000 in 2025, a year - on - year decrease of 3% [72][73]. 3.2 The Global Market Sales Continue to Grow, and the Proportion of Electricity Consumption Is Expected to Increase - In the future, the global new - energy vehicle market is expected to continue to expand. By 2030, global new - energy vehicle sales are expected to reach 4 million, and electric vehicle electricity consumption is expected to reach 790 TWh, nearly tripling compared to 2025. The proportion of electric vehicle electricity consumption in total electricity consumption will increase from 0.7% in 2024 to 2.5% in 2030 [76]. - China's new - energy vehicle market will continue to grow. By 2030, China's new - energy vehicle sales are expected to reach 2.12 million, and the proportion of electric vehicle electricity consumption in total electricity consumption will increase from 1.2% in 2024 to 3.6% in 2030. Europe's proportion of electric vehicle electricity consumption in total electricity consumption will increase from 1% in 2024 to 4.3% in 2030. The US's proportion of electric vehicle electricity consumption in total electricity consumption will increase from 0.6% in 2024 to 2.2% in 2030, but it may not reach the expected target if relevant policies are not implemented [81][86]. IV. Industrial Electricity Consumption Remains the Main Force, and China's Dominance Is Hard to Change 4.2 The Global Industrial Scale Continues to Expand, and China's Industrial Electricity Consumption Accounts for Half of the Global Total - The global new - round of industrialization is in full swing. In 2024, global industrial added value reached $28.9 trillion, a year - on - year increase of 1.3%. Industrial electricity consumption exceeded 11,000 TWh, a year - on - year increase of 4%, accounting for nearly 40% of the global total [91]. - China is a leading manufacturing country. In 2024, China's industrial added value reached $6.8 trillion, a year - on - year increase of 1.8%, accounting for 23.7% of the global total. In 2025, China's industrial electricity consumption reached 6,737 TWh, a year - on - year increase of 4.3%, accounting for 64.8% of the domestic total social electricity consumption. China's industrial electricity consumption has accounted for more than 50% of the global total since 2019 and is still increasing [93]. - The industrial added value of Europe and the US is slightly lower than that of China, and their industrial electricity consumption is far less than that of China. In 2024, the EU's industrial added value reached $4.3 trillion, a year - on - year decrease of 0.9%, accounting for 14.9% of the global total. In 2025, Europe's industrial electricity consumption was about 1,850 TWh, a year - on - year increase of 1.5%, accounting for more than 30% of the global total [98]. 4.2 Industrial Transfer Increases the Electricity Consumption Base, and Technological Empowerment Increases Marginal Demand - In the future, the global industrialization process will continue. By 2030, global industrial electricity consumption is expected to increase to over 12,800 TWh, with an average growth rate of 2.5%. The proportion of industrial electricity consumption in the global total electricity consumption will decrease to 35% [100]. - China's manufacturing advantage is difficult to shake and is expected to be strengthened. By 2030, China's industrial electricity consumption is expected to increase to over 8,200 TWh, accounting for over 60% of the global total. The US's industrial electricity consumption may not improve significantly due to industrial hollowing - out. Europe's industrial electricity consumption is not optimistic. The industrial electricity consumption of developing countries is expected to increase [100][101]. V. China's Electrification Rate Leads Europe and the US and Is Expected to Take the Lead in a Few Years 5.1 The Electrification Rate Affects the Electricity Consumption Multiplier, and China's Electrification Rate Is Growing Rapidly - The electrification rate reflects the modernization process. In 2025, the global electrification rate reached 21%. Japan's electrification rate reached 30%, and the main countries in Europe and the US generally maintained between 20% - 25%. China's electrification rate was close to 30%, and India's was still below 20% [107]. - China's electrification rate has achieved all - round development. In 2024, the electrification rate in the industrial field reached over 27%, in the construction field reached over 55%, and in the transportation field reached over 6% [107]. 5.2 The Global Electrification Rate Continues to Improve, and China's Main Industries Are Improving Steadily - In the future, the global electrification rate is expected to further increase. By 2030, the global electrification rate may increase to over 25%. China's electrification rate is expected to reach 35% by 2030. By 2028, the electrification rate in the industrial field may reach over 33%, in the construction field may reach over 58%, and in the transportation field may reach over 9% [109][110]. VI. Summary - Economic development is the foundation for the growth of electricity consumption. China is one of the main forces leading global economic growth, and its electricity consumption has great upward potential, which will be the core force driving global electricity consumption [114]. - Globally, the development of AI technology, the replacement of traditional fuel vehicles by new - energy vehicles, and the progress of industrialization will lead to an increase in electricity consumption. With the improvement of the electrification level of the whole society, the importance of electricity as a special commodity will be more emphasized [114].