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High-speed expansion of the power industry, low-voltage electrical equipment industry opportunities
In recent developments, the Jiangsu Yangzhou Power Supply Company has been actively installing intelligent regulated capacity distribution transformers within the Jiangsu Distribution Network Construction and Management Demonstration Zone in Yongqiao Village, Gongdao Town, Yangzhou. This initiative marks a significant step forward in modernizing the power grid and improving energy efficiency.
The first batch of smart transformers deployed in Yangzhou are capable of automatically adjusting their working capacity between 400 kVA and 125 kVA based on real-time load changes. According to estimates, each transformer can save over 9,000 kilowatt-hours annually through this intelligent adjustment, significantly reducing energy waste and operational costs.
Traditionally, grid-configured transformers are sized based on peak load requirements, which often results in underutilization during off-peak hours. These transformers typically operate at only one-third of their capacity during peak times, while running at lower loads for the remaining two-thirds. The larger the transformer, the higher the losses during operation. By using intelligent transformers that adapt to load fluctuations, power systems can achieve more efficient energy use, leading to substantial energy savings and reduced carbon emissions.
This year, global economic growth is expected to fall below 2.4 percentage points, with potential further declines in 2014. In such a challenging economic climate, businesses across various sectors face intense market competition. For companies in the low-voltage electrical appliances industry, adapting to these conditions and exploring new market opportunities is essential.
Despite the challenges, the development of China's low-voltage electrical appliances sector remains strong. With increasing demand from industries and transportation, as well as rapid expansion in the power sector, the industry is positioned for continued growth. During the "Twelfth Five-Year Plan" period, the State Grid invested 1.5 trillion yuan in smart grid infrastructure and digitalization, averaging about 300 billion yuan annually. This investment not only supports the steady growth of the low-voltage electrical appliance market but also drives innovation and technological advancement.
Urban population growth is another key driver, as it increases electricity demand and stimulates power generation. As a result, the future outlook for low-voltage electrical appliances remains positive.
However, currently, the Chinese low-voltage electrical appliance industry still faces challenges. Many enterprises operate on a small scale, producing large quantities of mid-to-low-end products, with three generations of technology coexisting in the market. To address this, the industry is expected to undergo structural adjustments, moving toward high-performance, reliable, compact, digital, modular, and standardized solutions.
The evolution of the industry depends on broader economic growth, industrial automation needs, and advancements in new technologies, processes, and materials. As the national economy continues to develop rapidly, the low-voltage electrical appliance industry is set to benefit from increased demand and greater opportunities.
With ongoing transformations in the power and distribution sectors, the industry is entering a period of significant opportunity. The combination of smart grid investments, urbanization, and technological progress ensures a promising future for low-voltage electrical appliances.