Listed companies ramp up deployment as demand for power grid equipment surges

Securities Daily Reporter Li Wanchengxi

Data from Eastmoney shows that on March 4th, A-share market power grid equipment concept stocks strengthened. By the close, stocks such as Ningbo Canaan Intelligent Electrical Co., Ltd., and Jiangsu Tongguang Electronic Cable Co., Ltd. hit the daily limit, with many stocks rising sharply.

“With the rapid iteration of AI large models, the scaling of computing clusters, the deep integration of digital economy and energy industries, and policy support, electricity, as the core support for AI computing power, is experiencing explosive growth in demand. This trend directly influences the power grid equipment sector, driving continuous industry prosperity. While reshaping the power supply and demand landscape, it also opens new growth opportunities for listed companies upstream and downstream of the industry chain,” said Cao Zhe, Chief Investment Officer of Beijing Aiwen Zhiliu Investment Management Co., Ltd., in an interview with Securities Daily.

Demand Continues to Unleash

“In the past, global electricity demand maintained steady growth for a long time. However, the rapid rise of AI data centers (AIDC) has become a key variable affecting power grid operation and directly driving the continuous surge in related power grid equipment demand,” said Lin Xianping, Executive Deputy Secretary-General of the China Urban Expert Think Tank Committee, in an interview with Securities Daily.

According to the General Administration of Customs, China’s transformer exports are projected to reach a record 64.6 billion yuan in 2025, a nearly 36% increase from 2024; the average export price per transformer has risen to 205,000 yuan, about one-third higher than in 2024.

Zheng Lei, Chief Economist at Samoy Cloud Technology Group, stated in an interview that compared to traditional data centers, AI computing clusters have significantly increased power density per cabinet and operate continuously at high loads 24/7, demanding higher reliability and continuity in power supply. This not only directly boosts demand for core equipment such as smart distribution networks and high-reliability transformers but also imposes new requirements on power grid equipment performance, accuracy, and adaptability in terms of power capacity, redundancy, and intelligent regulation.

Yuan Shuai, Deputy Secretary-General of the Zhongguancun IoT Industry Alliance, said in an interview that to meet the high-power, uninterrupted, and highly reliable electricity needs of AI computing centers, core grid equipment like transformers and smart switches are accelerating their iteration, upgrading toward intelligent, flexible, and controllable solutions, helping to achieve precise matching and efficient integration of power resources and computing power demands.

While demand continues to grow, “the 14th Five-Year Plan” period has provided strong support for the power grid equipment industry through increased investment. On January 15th, State Grid announced that during the 15th Five-Year Plan, fixed asset investment is expected to reach 4 trillion yuan, a 40% increase over the 14th Five-Year Plan. This investment focuses on building smarter and greener power grids, which will effectively boost demand for ultra-high voltage, smart distribution, and grid automation equipment.

Beyond investment plans, policy support from central to local levels continues to improve. On February 10th, the National Energy Administration announced the first batch of pilot projects to enhance new power system construction capabilities, covering key areas such as virtual power plants and smart microgrids. The State Council General Office’s February 11th “Implementation Opinions on Improving the National Unified Power Market System” mentioned promoting flexible participation of new market entities like virtual power plants, smart microgrids, and adjustable loads, further expanding the application scenarios and market space for smart grid equipment.

Locally, provinces such as Jiangsu, Guangdong, Sichuan, and Hubei have introduced supporting policies focusing on ultra-high voltage, distribution network upgrades, and digital transformation of the power grid, promoting high-end, intelligent, and green transformation of the industry.

Zhan Junhao, Partner at Fuzhou Gongsunce Public Relations Consulting Co., Ltd., said in an interview that as global computing power and data center construction accelerate, the power gap will widen, driving the rapid penetration of high-efficiency transformers and solid-state transformers. Meanwhile, new business models such as high-percentage grid-connected renewable energy, vehicle-grid interaction, and virtual power plants are emerging domestically, continuously boosting demand in distribution networks, energy storage, and dispatching equipment.

Companies Accelerate R&D

The explosive growth in market demand and strong policy support are encouraging listed companies to increase R&D efforts and accelerate product iteration. By launching new products and technologies tailored to industry needs, they aim to enhance core competitiveness.

A relevant person from Huazi Technology Co., Ltd. said the company has independently developed core multi-energy IoT technologies, creating integrated platforms for source-grid-load-storage, multi-energy IoT coordination controllers, industrial and commercial liquid-cooled energy storage cabinets, and energy storage inverters, providing comprehensive energy solutions. Several integrated source-grid-load-storage projects have already been implemented.

Guangdong Mingyang Electric Co., Ltd. previously stated on an investor interaction platform that, focusing on the smart grid market, the company will continue to strengthen R&D of high-voltage large-capacity products and GIS new products, aiming to improve overall competitiveness. Currently, the company’s high-voltage products include 500kV transformers and 252kV GIS products.

Dalian Electric Porcelain Group Co., Ltd. reported that its developed series of suspension porcelain insulators for ultra-high voltage AC/DC lines have reached international advanced levels, providing numerous products for major national projects such as China’s first 1000kV UHV AC transmission project and the world’s first ±800kV UHV DC transmission project.

Yu Fenghui, Senior Researcher at Pangu Think Tank (Beijing) Information Consulting Co., Ltd., said in an interview that related companies should focus on three major development directions: first, developing high-threshold products like special transformers and smart distribution equipment suitable for data centers; second, accelerating the implementation of intelligent technologies such as AI dispatching and flexible transmission; third, seizing opportunities in overseas power grid upgrades, leveraging technology and international markets to unlock performance potential.