China is one of the fast-growing markets and has now become the second largest market in the world. Especially in the recent period, speeding up the construction of projects such as west-to-east power transmission, north-south mutual supply, and cross-regional interconnection have promoted the rapid development of China's power transmission and distribution equipment industry. Industry insiders believe that from the current market development, my country's transformer manufacturing industry will usher in a period of continuous and stable development in the next few years.

In the next few years, driven by the construction of smart grids, UHV construction and grid transformation, as well as the development of the power industry, it is expected that the growth rate of power transformers will remain at about 10% during the 12th Five-Year Plan period.

During the Twelfth Five-Year Plan period, the State Grid Corporation of China will invest more than 300 billion yuan in the construction of AC UHV. In 2015, a three-vertical and three-horizontal AC UHV synchronous power grid will be formed, and 38 UHV substations will be added. The electric capacity is 260 million kVA, and the newly built UHV AC line is 26,000 kilometers; 15 DC projects have been developed, with a total conversion capacity of 230 million kilowatts, and the total length of the line is 25,000 kilometers.

The transformation of the domestic rural power grid has provided a strong impetus to the increase in demand for the transformer market. my country's new round of rural power grid transformation and upgrading has achieved positive results. As of November 2013, the two major power grid companies have completed a new round of rural power grid transformation and upgrading and invested 276.18 billion yuan in power construction in areas without electricity. According to the investment targets for rural power grid transformation disclosed by State Grid and China Southern Power Grid, the total investment of the two major power grid companies during the 12th Five-Year Plan period will exceed 500 billion yuan. China Grid is expected to invest nearly 400 billion yuan, and China Southern Power Grid is expected to invest 111.6 billion yuan. The transformation of rural power grids will directly increase investment in power grid construction and increase the share of the pie for the power equipment manufacturing industry. The transformer industry will usher in a new period of development opportunities.

New energy power generation brings new opportunities for transformers. From the perspective of some new energy power generation industries in my country, the installed power generation capacity of wind power, photovoltaic power generation, waste power generation, and waste heat power generation have all maintained growth. As of the end of 2012, the cumulative installed capacity of wind power nationwide was 60.83 million kilowatts, a year-on-year growth rate of 35%, the cumulative installed capacity of photovoltaic power generation was close to 5,000 MW, and the newly installed capacity of waste heat power generation was about 800 MW.

As a necessary power transmission and distribution equipment in the power generation industry, the demand for transformers is closely related to the scale of investment in the electric power grid. In recent years, the rapid development of the new energy power generation industry has brought better development space for transformers, and has also become an important direction for transformer manufacturers to seize market segments and expand their business scope. At the same time, it has also promoted the optimization of the transformer product structure and technological innovation.

At present, the smart grid has entered an important stage of comprehensive construction, the intelligent construction of urban and rural distribution networks will be fully launched, and smart grids and smart complete sets of equipment, smart power distribution, and control systems will usher in a golden period of development. This undoubtedly provides a good growth space for the transformer manufacturing industry.