Analysis and forecast of American electricity market in 2021

1、 U.S. grid operators:The U.S. power grid is mainly composed of three scattered and interconnected parts: the eastern power grid, the western power grid and the Texas power grid. Most of the lines and substations are private companies, plus more than 500 independent power grid operating companies, which also lowers the threshold for domestic small and medium-sized enterprises to enter the United States.

American electricity market

2、 Current situation of power system in the United States:In recent years, due to the frequent impact of extreme weather and other natural disasters, large-scale blackouts have occurred from time to time. In recent five years, there have been several large-scale blackouts in the U.S. power grid, especially on February 19, 2021 The winter storm that hit many states in the United States for several days caused 4 million people to lose power in the cold winter, at least 33 people died, and the electricity bill rose 200 times, as high as $10 / kWh (CNN reported). The California incident has fully exposed the vulnerability of the national grid of the United States, and a large amount of investment is urgently needed to improve it, otherwise the large-scale blackout time will continue. It is conceivable that the renewal of existing distribution network power equipment in the United States will be a huge market. I believe this is the opportunity for Chinese enterprises!

3、 Market analysis:In 2017, the United States imported $21.8 billion of electrical equipment from China, mainly transformers and cables (electrical equipment is mainly concentrated in the catalogue of 85 and 84hs binary codes). Among them, power transmission and transformation equipment accounted for 73% (mainly transformers and cables were US $10.3 billion), and the amount of power transmission and transformation equipment imported from China by the United States in 2017 was US $15.9 billion; power generation equipment accounted for 17% (mainly generators and motors), and the amount of power generation equipment imported from China by the United States in 2017 was US $3.73 billion.

dry transformer

Martin, chief economic analyst of Qingdao hengfengyou Electric Co., Ltd., thinks: China’s power grid investment maintains an annual investment scale of 500 billion yuan, and the distribution network has gradually become the focus of China’s power grid investment. In recent years, the average annual investment of the U.S. power grid is 44 billion US dollars, about half of the average annual investment of China’s power grid, and the distribution network has also become the investment gap of the U.S. power grid. According to the analysis of investment in the U.S. power grid and its enlightenment, in the 10 years from 2020 to 2030, the investment in the construction of the U.S. power grid will reach 500 billion US dollars. According to the Research Report on infrastructure investment gap in the United States issued by the American Society of civil engineers in 2016, the continuous expansion of the investment gap in the U.S. power grid will seriously damage the economic and social development. By 2025, the total investment gap will reach 177 billion US dollars, of which the distribution network will account for more than 50%.Tips: comparison of electricity consumption between China and the United StatesIn 2019, the total sales volume of all sectors in the United States was 1 trillion and 435 billion 147 million kilowatts, and the electricity consumption per capita was 4367.5 degrees. In 2019, the total electricity consumption of the Chinese mainland was 72255 kilowatt hours, and the electricity consumption was about 732 degrees.

China’s sustained high-speed economic development and rapid growth of power demand (China’s electricity consumption is growing at an average rate of 9%), led to the development of China’s transformer manufacturing industry.

icle source: hengfengyou electric( http://www.hengfengyou.com )

Published by hengfengyou

Qingdao Hengfengyou Electrical Engineering Co., LTD., subordinate to Hengfengshuai Group, is an export-oriented enterprise with transmission and distribution industry as its main business, integrating product research and development, manufacturing and trade. Its main products include power transformers, medium and low voltage switch cabinets, circuit breakers and other power distribution equipment and power engineering services.

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