Core Viewpoint - The demand for power grid equipment is increasing due to the rapid development of artificial intelligence (AI) and the subsequent rise in electricity consumption, highlighting the critical role of power grid devices in energy transmission and distribution [1][2]. Group 1: Market Performance - On November 5, the A-share market saw a strong performance in the power grid equipment sector, with 16 stocks hitting the daily limit, including Shanghai Moen Electric, Jiangsu Shunma Electric, and Zhongneng Electric, which experienced consecutive limit-ups [1]. - The rapid growth in the AI sector is expected to significantly increase electricity demand, further emphasizing the importance of power grid equipment [1]. Group 2: Storage Demand Growth - AI operations have a very low tolerance for power fluctuations, leading to a shift in data centers' focus from fearing power outages to fearing voltage instability, which has increased the demand for energy storage systems [2]. - The shipment of energy storage products has seen rapid growth, with Trina Solar reporting overseas orders exceeding 10 GWh, expected to be delivered mainly between 2025 and 2026 [2]. - EVE Energy reported a 35.51% year-on-year increase in energy storage battery shipments, totaling 48.41 GWh in the first three quarters of 2025 [2]. Group 3: Equipment Demand Trends - The transformation of the power system is leading to diversified and intelligent upgrades in power equipment demand, particularly with the increasing share of renewable energy and nuclear power [3]. - Companies like Moen Electric, Shunma Electric, and Zhongneng Electric are actively developing products in the energy storage sector, indicating a growing market opportunity [3]. Group 4: System Solutions - The integration of energy storage with traditional power distribution equipment is essential for the development of specialized transformers, energy management systems, and grid inverters, which could enable companies to transition from being single equipment suppliers to system solution providers [4].