Industry Briefing - Second Week of March

1.[China Southern Power Grid: Equipment Renewal Investment to Reach ¥195.3 Billion from 2024 to 2027]
In 2025, China Southern Power Grid will accelerate project implementation, advancing major infrastructure projects across multiple regions. Key initiatives include the Guangzhou Tianhe Tangxia Flexible DC Back-to-Back Project, the Hainan 500 kV Main Grid Project, the Guangdong Yangjiang Sanshan Island Offshore Wind Power Flexible DC Transmission Project, and participation in the construction of Gui’an New Area’s first 500 kV substation, the "Machang Substation." The company also announced a 2025 grid investment plan of ¥175 billion, with equipment renewal investments totaling ¥195.3 billion from 2024 to 2027.

2.[Three Key Development Zones Defined! Power Planning Institute Launches Survey for "16th Five-Year Plan" Desert-Gobi-Wilderness Mega Base Planning]
On March 6, the Electric Power Planning & Engineering Institute (EPPEI), commissioned by the National Development and Reform Commission, conducted a field survey in Alxa League to plan the layout of "16th Five-Year Plan" renewable energy mega bases in desert-gobi-wilderness (DGW) areas. EPPEI highlighted that the Ulan Buh, Tengger, and Badain Jaran deserts in Alxa are critical zones for future DGW mega base development, playing a pivotal role in China’s national renewable energy strategy. Moving forward, the Alxa Energy Bureau will proactively collaborate with national authorities and EPPEI to ensure the DGW mega base projects are implemented in Alxa, driving breakthroughs in renewable energy and injecting new momentum into regional high-quality development.

3.[Inner Mongolia Advances Large-Scale Renewable Energy Integration Through Internal-External Coordination]
As renewable energy capacity expands, Inner Mongolia faces challenges in grid absorption. To address this, the Inner Mongolia Energy Bureau has proposed a dual strategy: prioritizing both cross-regional transmission and local consumption to ensure a renewable utilization rate above 90%. For cross-regional transmission, efforts include increasing green power allocation ratios for existing lines, accelerating DGW mega base transmission corridors, and collaborating with the State Grid to secure approvals and expedite construction of two new corridors. The goal is to achieve 80 billion kWh of outbound transmission, including over 15 billion kWh of green power supplied to Beijing.

4.[Breakthroughs in New Insulator Technology]
Sichuan Qingyuan Huachuang Technology Co., Ltd., a company incubated by Tianfu Yongxing Laboratory, was recently established. Specializing in R&D and production of 4th-generation 110kV/220kV rigid composite insulators, the company’s products have already been deployed on multiple transmission lines and entered pre-commercial production. These insulators aim to resolve issues seen in earlier generations, such as sealing failures, poor pollution flashover resistance, zero-value defects, and self-explosion. The company has secured initial orders from Xinjiang and targets ¥100 million in sales by 2028. With rising grid demands, the R&D and industrialization of advanced insulators are accelerating.

5.[Five Ministries Adjust Tax Policies for Imported Critical Technical Equipment]
On February 14, 2025, the Ministry of Industry and Information Technology, Ministry of Finance, General Administration of Customs, State Taxation Administration, and National Energy Administration issued a notice revising tax exemption policies for imported major technical equipment. The Catalog of Non-Tax-Exempt Major Technical Equipment and Products (2025 Edition) now includes all specifications of insulators. This adjustment will raise costs for importing suspension insulators, incentivizing domestic companies to boost R&D and production, thereby fostering further growth in China’s insulator industry.