The construction of long-distance UHV transmission can solve the supply-demand mismatch of renewable energy, contributing to emission reduction of energy sector

China's power grid construction is strongly countercyclical. Therefore, power grid investment has become important means for China to stimulate economic growth and has made significant contributions to employment.

The worsening electromagnetic environment brought by UHV substations may affect the radio reception and radio stations, as well as the work and life of neighboring people. (12)

The maintenance cost is high. Since dust will be constantly adsorbed to UHVDV equipment, electrical porcelains and wires, it can easily cause pollution flashovers or damage the core components.

The mismatch- imbalance between energy distribution and energy needs in China can be solved, large-scale energy resource allocation can be optimized

(Policy document): The 14th 5-Year Plan clearly stated that we should promote the energy revolution and build a clean, low-carbon, safe, and efficient energy system to enhance energy supply capabilities. Efforts should be made to improve the utilization rate of UHV power transmission channels. (3)

(Policy document): The National Energy Administration proposed to accelerate multiple UHV projects and enhance new energy transmission capacity, including rev up the construction of UVDC power transmission routes and key projects. The State Grid set short-term targets for the UHV projects.(19)

(Policy document): In February 2020, the State Grid released the "2020 Key Tasks", emphasizing the promotion of "5 AV and 2 DV” UHV construction projects. (13)

Financial incentives: In 2018, the State Grid launched a large-scale mixed ownership reform, actively engaging the participation of local social capital such as insurance, large industrial funds, and local government-owned investment platforms.

Other incentives: It was stated to encourage the involvement of social capital in power grid construction. These capitals should be promoted in transprovincial and trans-regional power transmission routes, main networking projects, and distribution networking in large and medium-sized cities.(19)

(Regulation): The National Energy Administration regulates the investment results in typical grid projects from three perspectives, i.e. planning implementation, operation timeliness, investment and efficiency. (15)

(Regulation): In April 2021, the Standardization Administration of the P.R.C. issued the "2021 Standardization Work Plan in China". The plan proposed to accelerate the development of standards for UHVAC and UHVDC transmission, power system safety, and demand-side management. (14)

(Regulation): For the permanent land taken by UHV projects, such as transformer substations and converter stations, the land use right can be obtained through the transfer and allocation of land for construction. (16)

Representative companies: NARI Technology Co., Ltd., XJ Electric Co., Ltd., Henan Pinggao Electric Co., Ltd., China XD Electric Co., Ltd. Investment institutions: Sequoia Capital, Shenzhen Capital Group, Shenzhen Dachen Caizhi Fortunevc, SDIC Venture Capital.

Government: Relevant documents have been issued by many local governments to promote the development of the UHV industry, such as Chongqing province, Gansu province, Hunan province, etc.