Core Insights - The concept of the "new generation power grid" is centered around the "energy internet," which utilizes interconnected technologies and is based on distribution networks to integrate a large amount of distributed renewable energy, enhancing electricity efficiency through intelligent energy management systems [1][2] Group 1: Market Opportunities - The power equipment industry is experiencing a dual boost from policy support and surging demand, with a clear growth trajectory. The global power market size surpassed $350 billion in 2023 and is expected to exceed $450 billion by 2025, with a compound annual growth rate (CAGR) of nearly 12%. The clean power conversion equipment sector is projected to have a CAGR of 23.8% from 2024 to 2030 [3] - The demand for power equipment is driven by multiple sectors, including 5G infrastructure, where the number of national base stations is expected to exceed 4.5 million by 2025, increasing the value of power per station by 60% compared to 4G. Additionally, the number of ultra-large data centers is projected to reach 120, with power investment accounting for 18% of total costs [3] Group 2: Investment Trends - In August 2025, the national power engineering investment reached 70.4 billion yuan, a year-on-year decrease of 14%. However, the cumulative investment from January to August 2025 was 499.2 billion yuan, showing a slight increase of 0.3% year-on-year. The "East Data West Computing" project has seen over 15 billion yuan in power investment, with total support for green communication projects reaching 67.5 billion yuan by 2025 [6] - The power grid equipment sector is witnessing a strong correlation between high investment and demand, with total investments from the State Grid and Southern Grid expected to reach 825 billion yuan in 2025, marking a historical high. The investment in ultra-high voltage projects is projected to be 112 billion yuan, a year-on-year increase of 34% [10][9] Group 3: Technological Advancements - The power electronic transformer (PET) is a core device for the new generation of power conversion, benefiting from technological breakthroughs and increasing downstream demand. The global market for PETs in renewable energy grid integration is expected to reach 4.8 billion yuan by 2025, with a CAGR of 25% [15] - Technological advancements in PETs include high-frequency and modular designs, with efficiency exceeding 98% and a 50% reduction in size and weight compared to traditional transformers. Domestic companies have achieved industrialization of PET technology at the 10kV/2MVA level, with a domestic production rate exceeding 85% and costs down by 30% since 2020 [18] Group 4: Investment Outlook - The new generation power grid is entering a golden investment period, with total investments from the State Grid and Southern Grid expected to exceed 825 billion yuan in 2025. Key investment areas include ultra-high voltage and intelligent distribution networks, with the former projected to receive 112 billion yuan in investment and the latter achieving over 90% automation coverage [18]

Core Viewpoint - The article discusses the emergence of the "new generation power grid," also known as the "energy internet," which focuses on integrating distributed renewable energy sources and enhancing electricity management efficiency through advanced technologies [2]. Group 1: Market Overview - The global power equipment market has surpassed $350 billion in 2023 and is expected to exceed $450 billion by 2025, with a compound annual growth rate (CAGR) of nearly 12% [3]. - The clean electricity conversion equipment sector is projected to experience explosive growth, with a CAGR of 23.8% from 2024 to 2030 [3]. - The demand for power equipment is driven by multiple sectors, including 5G infrastructure and data centers, with significant increases in investment expected [3]. Group 2: Investment Trends - In August 2025, the national power engineering investment reached 70.4 billion yuan, a year-on-year decrease of 14%, while the cumulative investment for the first eight months of 2025 was 499.2 billion yuan, a slight increase of 0.3% [5]. - The national grid engineering investment in August 2025 was 48.1 billion yuan, reflecting a year-on-year increase of 25.6%, with a cumulative investment of 379.6 billion yuan for the first eight months, up 14% year-on-year [9]. - The investment from the State Grid and Southern Power Grid is expected to reach a historical high of 825 billion yuan in 2025, with a significant focus on ultra-high voltage projects [10][21]. Group 3: Technological Advancements - The power electronics transformer (PET) is identified as a core component of the new generation power grid, with a projected market size of 4.8 billion yuan by 2025, growing at a CAGR of 25% [16]. - Technological innovations in PET, such as high-frequency and modular designs, have improved efficiency to over 98% and reduced size and weight by 50% compared to traditional transformers [19]. - Domestic companies have achieved significant advancements in PET technology, with a localization rate exceeding 85% and costs reduced by 30% since 2020 [20]. Group 4: Future Outlook - The new generation power grid is entering a golden investment period, with a focus on ultra-high voltage and intelligent distribution networks, which are expected to see substantial growth [21][22]. - The integration of high proportions of renewable energy is driving the need for grid upgrades, with digital technologies further enhancing investment opportunities in areas like ultra-high voltage equipment and smart distribution [22].

Core Insights - The surge in stock prices of key players in the power equipment sector reflects the accelerated construction of the "new generation power grid," with significant investments from State Grid and Southern Grid totaling 825 billion yuan this year, marking a historical high [1][5][10] - The demand for ultra-high voltage and intelligent distribution networks is rapidly increasing, driven by the need for smart upgrades and the integration of distributed renewable energy sources [3][5][10] Investment Landscape - The investment in ultra-high voltage projects reached 112 billion yuan this year, a 34% increase year-on-year, with major projects like the Cangyu DC Super Project exceeding 53.2 billion yuan [5] - The market for intelligent distribution equipment is expected to grow at an annual rate of over 18%, while the core equipment market for ultra-high voltage has surpassed 210 billion yuan, with a domestic production rate exceeding 90% [5][10] Technological Advancements - The efficiency of power electronic transformers using silicon carbide (SiC) devices can exceed 98%, with a significant reduction in size and weight compared to traditional transformers [8] - The global power supply market is projected to exceed 350 billion dollars in 2023, with a compound annual growth rate of nearly 12%, and the clean power conversion equipment segment is expected to grow at a rate of 23.8% from 2024 to 2030 [8] Market Dynamics - The demand for power electronic transformers is expected to grow by 30% annually due to the increasing number of AI data centers, which are projected to reach 120, with power investment accounting for 18% of their costs [8][10] - The market for solid-state transformers used in AI data centers in China is expected to grow from 2.9 billion dollars in 2025 to 7.4 billion dollars by 2030 [8] Company Performance - Key companies such as Guodian NARI, Chint Electric, and Xinte Energy have seen significant stock price increases of 48%, 55%, and 39% respectively, benefiting from the demand for ultra-high voltage and intelligent distribution network upgrades [1][10] - The opportunities within the power grid industry are clear, with each segment showing potential for growth driven by substantial investments and technological advancements [10]

Core Viewpoint - The surge in stock prices of key players in the electric equipment sector reflects the accelerated construction of the "new generation power grid," driven by significant investments from State Grid and Southern Grid totaling 825 billion yuan this year [2][6]. Investment and Market Trends - The investment in ultra-high voltage projects reached 112 billion yuan, a year-on-year increase of 34%, indicating strong demand for related equipment [6]. - The market for intelligent distribution equipment is expected to grow at an annual rate of over 18%, driven by the need for smart upgrades in distribution networks [7]. - The global power supply market is projected to exceed 450 billion USD by 2025, with a compound annual growth rate of nearly 12%, particularly in clean power conversion equipment, which is expected to grow at 23.8% from 2024 to 2030 [9]. Demand Drivers - By 2025, renewable energy installations in China are expected to account for 40% of the total, necessitating smart upgrades in distribution networks [7]. - The demand for power electronic transformers is increasing, with a projected market size of 4.8 billion USD by 2025, growing at a compound annual growth rate of 25% [12]. - The explosion of AI data centers is driving a 30% annual increase in demand for power electronic transformers, with the market in China alone expected to reach 2.9 billion USD by 2025 [10]. Company Performance - Key players such as State Grid, Southern Grid, and companies like Guodian NARI and Chint Electric have seen significant stock price increases of 48% and 55% respectively, benefiting from the demand for ultra-high voltage and smart distribution equipment [2][12]. - New Special Electric has capitalized on the demand for high-efficiency power electronic transformers, resulting in a 39% increase in stock price [10][12]. Future Opportunities - The electric grid industry presents clear opportunities across various segments, including ultra-high voltage, intelligent distribution, and power electronic transformers, with leading companies unable to meet the growing order demand [12]. - Continuous updates on industry data and company dynamics will be essential for identifying potential investment opportunities in this evolving landscape [12].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report emphasizes the importance of power electronics technology and equipment in meeting the demands of the new generation power grid, which is expected to integrate a significant share of renewable energy sources by 2030, aiming for non-fossil energy to account for approximately 20% of primary energy consumption in China [4][6] - The new generation power grid is characterized by the integration of distributed renewable energy sources, smart energy management systems, and advanced power electronics devices, which enhance the efficiency and reliability of energy distribution [11][90] Summary by Sections Background and Significance - The new generation power grid is projected to evolve into an "energy internet," focusing on interconnectivity and the integration of distributed renewable energy sources [11] - Power electronics transformers are identified as essential components, providing functionalities such as voltage transformation, electrical isolation, and energy transmission, while also enabling reactive power compensation and harmonic mitigation [14][19] Challenges and Opportunities - The report discusses the challenges posed by the complexity of modular multilevel converters and the need for innovative topologies to address issues such as electromagnetic transient analysis and control complexity [28][31] - It highlights the dual development direction of semiconductor power devices, focusing on increasing power and voltage ratings while also enabling large capacity applications through combinations of smaller devices [31] Modeling and Simulation - The design and operation of power electronics transformers present significant challenges for modeling and simulation due to their complex structures and diverse functionalities [41] - The report introduces a new discrete state event-driven (DSED) simulation method that enhances simulation speed and accuracy, addressing the limitations of traditional simulation techniques [45][59] Applications and Demonstrations - The report outlines the involvement in national key research and development programs focused on critical technologies and core equipment for hybrid AC/DC distributed renewable energy systems [81][82] - It details the development of multifunctional power electronics transformers with multiple ports and configurations, enhancing system efficiency and reliability [89][90] Development and Outlook - The report anticipates a transformation in power electronics technology, moving towards a new generation that incorporates non-ideal switch characteristics and electromagnetic energy pulse control [103] - It emphasizes the need for efficient modeling and simulation methods to support the development of advanced power electronics devices and systems, ultimately facilitating the growth of distributed generation and microgrid technologies [104]