The 18th National Party Congress clearly emphasized that China remains in the primary stage of socialism, a fundamental national condition that has not changed. It highlighted ongoing challenges such as unbalanced and unsustainable development, calling for urgent improvements in the quality and efficiency of growth. The need to adjust economic structures and focus on people’s livelihoods became a top priority. The Congress outlined a new strategic plan known as "New Sihua," introducing a five-in-one comprehensive layout. This included enhancing innovation, promoting economic restructuring, integrating urban and rural development, improving the open economy, and advancing resource conservation and environmental protection. These initiatives placed higher demands on the power industry, pushing it toward more sustainable and intelligent development.
Firstly, the "two doubles" policy and the push for urbanization introduced new demands on the electrical industry. It is projected that by 2020, China will achieve a moderately prosperous society, with per capita energy consumption reaching approximately 3.8 tons of standard coal, and total energy use climbing to 5.3 billion tons—a 63% increase from 2010. With the current urbanization rate just over 50%, compared to 75–80% in developed countries, urbanization is expected to significantly boost energy demand, tripling per capita consumption from rural to urban areas.
Experts predict that electricity will account for 25% of terminal energy consumption by 2015, with national electricity demand reaching 7–8 trillion kWh by 2020. In 2012, installed capacity was around 1.14 billion kW, and a 60% increase is required. This calls for the electrical industry to adopt a more intensive, smart, green, and low-carbon development path. Additionally, the construction of an ecological civilization and the vision of a "beautiful China" necessitate a profound transformation in energy strategies, shifting from reliance on fossil fuels to greater use of renewable sources. This shift presents new opportunities for the electrical equipment manufacturing sector.
According to the National Energy Administration's 2013 forecast, China's economy will stabilize and grow, driving increased electricity demand. In 2013, the country added 90 million kW of new capacity, including 36 million kW of thermal power, 21 million kW of hydro, 3.24 million kW of nuclear, 18 million kW of wind, and 10 million kW of solar. Non-fossil energy accounted for 58% of this growth. By the end of 2013, total power generation capacity was expected to reach 1.23 billion kW, making China the world leader in installed capacity.
With the restart of coastal nuclear projects, nuclear power construction gained momentum, with the number of projects potentially doubling from 2012. Wind and solar industries also saw significant growth in 2013, supported by national policies. Environmental protection efforts intensified, pushing the power industry toward green and ecological development. This trend opens up new opportunities for high-efficiency, low-consumption, and intelligent electrical equipment.
China has been accelerating its transition to smarter and more efficient power systems, enhancing grid capabilities for wide-area energy optimization and building a strong smart grid based on UHV (Ultra High Voltage) infrastructure. Several major UHV projects were under construction, including the Huinan-Minnan-Zhebei-Shanghai and Haminan-Zhengzhou lines. In 2013, the State Grid planned to launch four new UHV transmission lines, signaling a major investment in power transmission and transformation manufacturing.
The 2013 Government Work Report set an economic growth target of about 7.5%, indicating a continued recovery and stabilization of the economy. With stable policies in place, the macroeconomic environment was favorable for the equipment manufacturing industry, including the electrical sector. However, challenges such as overcapacity, rising accounts receivable, and declining profits remained. International trade tensions also posed risks.
It is expected that the growth of production and sales in the electrical industry would remain at the 2012 level, around 12–15%. Due to policy support and a low base in 2012, profit growth was likely to match the pace of production and sales. While imports and exports might face similar difficulties as in 2012, there could be a modest increase of less than 5% in 2013. With an expected 90 million kW of new power generation capacity, the output of power generation equipment was projected to reach 110–120 million kW, transformers to 1.4 billion kVA, and high-voltage switchgear to around 1.8 million units.
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