On July 31, the State Council convened a standing meeting to focus on enhancing urban infrastructure development. The key directions for investment included strengthening urban distribution networks, advancing the smart grid initiative, and expanding rail transit systems. This marks a significant shift in policy, with smart grid and distribution network upgrades becoming central priorities at the national level. In recent years, especially five years ago, governments aimed to stimulate domestic demand by increasing power grid investments. Both the State Grid Corporation of China and China Southern Power Grid responded with substantial capital injections, which greatly benefited power equipment manufacturers and created a booming market environment.
This time, the emphasis is once again on modernizing urban distribution networks and accelerating the intelligentization of the power grid. These measures are part of broader efforts to adjust the economic structure and support sustained growth. The policy also aims to improve grid reliability, facilitate the integration of distributed energy sources like solar power, and manage the fluctuating loads from electric vehicle charging stations and battery swapping facilities. It's a comprehensive approach that aligns with emerging trends in clean energy and transportation.
Despite progress, the task of building a robust distribution network remains challenging. Cities like Shenzhen and Shanghai still face issues with frequent power outages. As of 2009, only 9% of China’s distribution networks were automated, and even in pilot cities like Hangzhou, by May 2013, coverage was just 50%. This highlights the long road ahead for full modernization.
Power grid companies are preparing for this transformation. For instance, China Southern Power Grid planned a total investment of 227.9 billion yuan during the 12th Five-Year Plan for rural distribution networks, with 150.5 billion yuan allocated for 2013–2015. That represents an annual average of 50 billion yuan, a 33.3% increase from 2012, with urban distribution network investment expected to grow even faster. Similarly, the State Grid Corporation has prioritized distribution network upgrades as an urgent task, with internal reports and articles emphasizing the need for improved power supply reliability and modern infrastructure.
Cooperation between central and local governments is also key. Local authorities are expected to address major challenges such as land acquisition and power corridor planning, which have often delayed urban grid projects. This collaborative effort is likely to accelerate progress, reduce outage times, and better accommodate new energy trends like microgrids and electric vehicles.
In terms of equipment suppliers, the smart grid sector is entering a phase of rapid expansion. The smart substation market is projected to grow by 20–25% over the next five years, while the smart power distribution market could see a 30% increase. Companies such as Nan Rui Ji Bao, Guodian NARI, XJ Electric, Sifang, Siyuan Electric, Jicheng Electronics, HKUST Smart, Changyuan Shenrui, and Guodian Nanzi are well-positioned to benefit from this trend.
In addition to power grid upgrades, the conference also emphasized the importance of expanding rail transit systems, including subways and light rail. In 2012, the National Development and Reform Commission approved 609 billion yuan in rail transit projects, and recently, the approval process has been streamlined. This year, the bidding landscape for railway construction has been strong, with companies like NARI winning 60% of the bids for already-invited lines. There are 17 lines currently under tender, signaling continued momentum in this sector.
SBS prefabricated building is a new type environmental friendly product that adopts steel structure as frames, various plates and panels as surrounding protection system, high strength bolts as component connection. The metal frame buildings are mainly used as modular house, office, cleaning workshop, cold storage room, wide span workshop, warehouse, exhibition hall,stadiums , hangars, steel-structure supermarkets, high-rise steel constructions, logistics center, container house and so on.
Steel Garage,Container House Garage,Large Parking Platform,Steel Structure Metal Garage
Foshan Shengbang Steel Structure Co.,Ltd , https://www.sbsstructure.com