Top Ten Ideas for Power Equipment Industry in 2015

The adjustment of energy structure is a major strategy and direction for China to continue for a long time and accelerate its development. Along this main line, there will be many investment opportunities, such as UHV, new energy, and energy conservation and environmental protection. In 2015, new power equipment Ten major conjectures in the energy industry will also closely align with this main line.

Imagine one: In the first year of CSP, industry policies will be gradually introduced. Photo-thermal power generation has solved energy storage and supported the need for large-scale construction of new energy power plants in the northwest. We will be optimistic about solar thermal power generation in the new energy sub-sector next year, and we expect to usher in plate opportunities.

Imagination II: The construction of UHV continued construction is expected to be implemented. The continuous development of the proportion of new energy and the combination of large-scale long-distance transmission and energy development have determined the continuous progress of UHV construction.

Imagination III: Energy storage will usher in policy support and it is expected to become a hot spot. In the future, with the increase of China's new energy incorporation, the development of new energy sources at the distribution side, and the increase in the application of distributed microgrid, it will certainly promote the rapid development of China's power storage industry.

Imagination 4: PV distribution needs new business models to promote. As China's future development of distributed generation in the central and eastern regions to meet the needs of China's energy structure adjustment strategy is the general trend, therefore, China's distributed generation in 2015 is expected to obtain further policy support and derive new business models to promote.

Imagination 5: "Promotion along the way" has become a breakthrough point for large quantities of power equipment to go abroad. Considering that the construction of power grids in developing countries along the Silk Road is relatively backward, coupled with the backwardness of local equipment companies in these countries, limited supply capacity, and high import dependency, this brings to China's power equipment companies with obvious technological advantages. A great business opportunity.

Imagination VI: Industry 4.0 will promote the industrial control and frequency conversion industry to further extend the field of industrial automation and robotics.

With the rise of the concept of Industry 4.0, it is expected to promote the extension of low-voltage inverter manufacturers to robotics and industrial automation, thereby increasing the industry's growth rate.

Imagination 7: The future development of low temperature waste heat is big. Nearly 60-65% of the energy in China's industrial energy is converted into waste heat resources, and the low temperature waste heat whose temperature is below 350°C accounts for about 60% of the total waste heat, and there is huge room for future development.

Imagination 8: Beyond the imagined transition, the overall listing of the State-owned companies will accelerate. The new energy industry for power equipment has entered the M&A cycle. M&A in the future will continue for a long time. In 2015, the merger and reorganization of the industry will be further deepened.

Imagination 9: Electric power system reform changes the profit model in the industry. With the relative independence of China's power trading centers and the liberalization of power trading, there will be great opportunities for power equipment and power related industries.

Imagination Ten: Nuclear power restarted. We expect that with the resolution of the AP1000 main pump problem and the gradual maturation of Hualong No. 1 technology, China’s nuclear power will be restarted.