On August 25, 2022, the China Electric Power Construction Enterprise Association officially released the “China Electric

Power Construction Industry Annual Development Report 2022″ (hereinafter referred to as the “Report”). The report

summarizes my country’s power investment and project operation, and makes an outlook for the future development of

the power industry. Domestic power grid engineering construction. By the end of 2021, the loop length of transmission

lines of 220 kV and above in the national power grid will be 843,390 kilometers, a year-on-year increase of 3.8%. The

capacity of public substation equipment and DC converter capacity of 220kV and above transmission lines in the national

power grid were 4,467.6 million kVA and 471.62 million kilowatts, respectively, up 4.9% and 5.8% year-on-year.

International environment and markets. In 2021, the global investment in power construction will total 925.5 billion US

dollars, a year-on-year increase of 6.7%. Among them, the investment in power engineering was 608.1 billion US dollars,

a year-on-year increase of 6.7%; the investment in power grid engineering was 308.1 billion US dollars, a year-on-year

increase of 5.7%. China’s major electric power companies invested US$6.96 billion in foreign direct investment, a year-

on-year decrease of 11.3%; a total of 30 foreign direct investment projects, mainly involving wind power, solar power,

hydropower, thermal power, power transmission and transformation and energy storage, etc., directly created 51,000

yuan for the project location. jobs.

In addition, the “Report” analyzes the changes and development trends of power companies in 2021 from power survey

and design companies, construction companies, and supervision companies.

The situation of electric power survey and design enterprises. In 2021, the operating income will be 271.9 billion yuan,

a year-on-year increase of 27.5%, showing a continuous growth trend in the past five years. The net profit margin was 3.8%,

a year-on-year increase of 0.08 percentage points, showing a continuous downward trend in the past five years. The debt

ratio was 69.3%, a year-on-year increase of 0.70 percentage points, showing a trend of fluctuation and slight increase in

the past five years. The value of newly signed contracts was 492 billion yuan, a year-on-year increase of 17.2%, showing a

continuous growth trend in the past five years. The per capita operating income was 3.44 million yuan, a year-on-year

increase of 15.0%, showing a continuous growth trend in the past five years. The per capita net profit was 131,000 yuan,

a year-on-year increase of 17.4%, showing a downward trend in the past five years.

The situation of thermal power construction enterprises. In 2021, the operating income will be 216.9 billion yuan, a year-

on-year increase of 14.0%, showing a continuous growth trend in the past five years. The net profit margin was 0.4%, a

year-on-year decrease of 0.48 percentage points, showing a fluctuating downward trend in the past five years. The debt

ratio was 88.0%, a year-on-year increase of 1.58 percentage points, showing a steady and slightly upward trend in the past

five years. The value of newly signed contracts was 336.6 billion yuan, a year-on-year increase of 1.5%. The per capita

operating income was 2.202 million yuan, a year-on-year increase of 12.7%, showing a downward trend in the past five years.

The per capita net profit was 8,000 yuan, a year-on-year decrease of 25.8%, showing a horizontal fluctuation trend in the

past five years.

The situation of hydropower construction enterprises. In 2021, the operating income will be 350.8 billion yuan, a year-on-

year increase of 6.9%, showing a continuous growth trend in the past five years. The net profit margin was 3.1%, a year-on-

year increase of 0.78 percentage points, showing a horizontal fluctuation trend in the past five years. The debt ratio was 74.4%,

a year-on-year decrease of 0.35 percentage points, showing a continuous downward trend in the past five years. The value

of newly signed contracts was 709.8 billion yuan, a year-on-year increase of 7.8%, showing a continuous upward trend in the

past five years. The per capita operating income was 2.77 million yuan, a year-on-year increase of 7.9%, showing a continuous

growth trend. The per capita net profit was 70,000 yuan, a year-on-year increase of 52.2%, showing a fluctuating growth trend

in the past five years.

The situation of power transmission and transformation construction enterprises. In 2021, the operating income will be 64.1

billion yuan, a year-on-year increase of 9.1%, showing a continuous growth trend in the past five years. The net profit margin

was 1.9%, a year-on-year decrease of 1.30 percentage points, showing a trend of fluctuating growth and decline in the past five

years. The debt ratio was 57.6%, a year-on-year increase of 1.80 percentage points, showing a downward trend in the past five

years. The value of newly signed contracts was 66.4 billion yuan, a year-on-year increase of 36.2%, showing a fluctuating growth

trend in the past five years. The per capita operating income was 1.794 million yuan, a year-on-year increase of 13.8%, showing

a continuous growth trend in the past five years. The per capita net profit was 34,000 yuan, a year-on-year increase of 21.0%,

showing a trend of fluctuating growth and decline in the past five years.

The situation of electric power supervision enterprises. In 2021, operating income will be 22.7 billion yuan, a year-on-year decrease

of 25.2%, showing a trend of growth and decline in the past five years. The net profit margin was 6.1%, a year-on-year increase

of 0.02 percentage points, showing a fluctuating decline in the past five years and a flat trend in the past year. The debt ratio was

46.1%, a year-on-year increase of 13.74 percentage points, showing an upward and downward trend in the past five years. The value

of newly signed contracts was 39.5 billion yuan, a year-on-year increase of 6.2%, showing a fluctuating growth trend in the past five

years. The per capita operating income was 490,000 yuan, a year-on-year decrease of 22.7%, showing a trend of growth and decline

in the past five years. The per capita net profit was 32,000 yuan, a year-on-year decrease of 18.0%, showing a fluctuating downward

trend in the past five years.

The situation of electric power commissioning enterprises. In 2021, the operating income will be 55.1 billion yuan, a year-on-year

increase of 35.7%, showing a continuous growth trend in the past five years. The net profit margin was 1.5%, a year-on-year decrease

of 3.23 percentage points, showing a continuous downward trend in the past five years. The debt ratio was 51.1%, an increase of 8.50

percentage points year-on-year, showing a fluctuating upward trend in the past five years. The value of newly signed contracts was 7

billion yuan, a year-on-year increase of 19.5%, showing a downward trend in the past five years. The per capita operating income was

2.068 million yuan, a year-on-year increase of 15.3%, showing a continuous growth trend in the past five years. The per capita net profit

was 161,000 yuan, a year-on-year increase of 9.5%, showing a continuous growth trend in the past five years.

The “Report” pointed out that according to the relevant “14th Five-Year Plan” issued by the state and the relevant report issued by the

China Electricity Council (hereinafter referred to as “China Electricity Council”), in terms of power supply construction, by 2025, the

total installed capacity of power generation in the country is expected to be It will reach 3 billion kilowatts, including 1.25 billion

kilowatts of coal power, 900 million kilowatts of wind power and solar power, 380 million kilowatts of conventional hydropower, 62

million kilowatts of pumped hydropower, and 70 million kilowatts of nuclear power. During the “14th Five-Year Plan” period, it is

estimated that the annual average new installed capacity of power generation nationwide is about 160 million kilowatts. Among them,

coal power is about 40 million kilowatts, wind power and solar power are about 74 million kilowatts, conventional hydropower is about

7.25 million kilowatts, pumped hydropower is about 7.15 million kilowatts, and nuclear power is about 4 million kilowatts. By the end

of 2022, it is estimated that the total installed capacity of power generation nationwide will reach 2.6 billion kilowatts, an increase of

about 9% year-on-year. Among them, the total installed capacity of coal power is about 1.14 billion kilowatts; the total installed capacity

of non-fossil energy power generation is about 1.3 billion kilowatts (accounting for 50% of the total installed capacity for the first time),

including hydropower 410 million kilowatts and grid-connected wind power 380 million kilowatts, grid-connected solar power generation

is 400 million kilowatts, nuclear power is 55.57 million kilowatts, and biomass power generation is about 45 million kilowatts.
In terms of power grid construction, during the “14th Five-Year Plan” period, my country will add 90,000 kilometers of AC lines of 500 kV

and above, and the substation capacity will be 900 million kVA. The transmission capacity of the existing channels will be increased by

more than 40 million kilowatts, and the construction of new inter-provincial and inter-regional transmission channels will be more than

60 million kilowatts. The planned investment in the power grid will be close to 3 trillion yuan. State Grid plans to invest 2.23 trillion yuan.

Among them, the “five AC and four direct” UHV projects are planned to be constructed, with a total of 3,948 kilometers of AC and DC lines

(converted), a new substation (conversion) capacity of 28 million kVA, and a total investment of 44.365 billion yuan.

According to the forecast data of Fitch, an internationally renowned rating agency, the growth rate of global power installed capacity will

gradually decline and remain stable in 2022. It is expected to increase by about 3.5% year-on-year, drop to about 3.0% in 2023, and will

further decline and maintain from 2024 to 2025. around 2.5%. Renewable energy will be the main source of growth in electricity installations,

growing by as much as 8% per year. By 2024, the share of renewable energy generation will increase from 28% in 2021 to 32%. The European

Solar Energy Association released the “2021-2025 Global Photovoltaic Market Outlook Report”, predicting that the total installed capacity

of global solar power will reach 1.1 billion kilowatts in 2022, 1.3 billion kilowatts in 2023, 1.6 billion kilowatts in 2024, and 1.8 billion kilowatts

in 2025. kilowatt.

Note: The statistical caliber of the operation data of China’s electric power construction enterprises is 166 electric power survey and design

enterprises, 45 thermal power construction enterprises, 30 hydropower construction enterprises, 33 power transmission and transformation

construction enterprises, 114 electric power supervision enterprises, and 87 commissioning enterprises. The business scope mainly covers

coal power, gas power, conventional hydropower, pumped storage power generation, power transmission and transformation, nuclear power,

wind power, solar power and energy storage.