UHV power equipment is poised to make major strides in its global expansion.

　UHV Equipment Poised for Overseas Deployment: Insights from the Belo Monte Hydropower Project

In the first phase of the Belo Monte Hydropower Project, State Grid Corporation of China (SGCC) and Brazil’s Eletrobras participated as investors but had no decision-making power over equipment suppliers. Ultimately, the equipment contracts were awarded to overseas companies. Unlike the first phase, SGCC independently bid for the second phase of the Belo Monte Project, adopting a model of investment + Engineering, Procurement and Construction (EPC) + operation.

UHV Equipment Is On the Verge of Going Global

Under the operation model of the second phase, SGCC has the right to independently select power equipment suppliers, which greatly increases the possibility of domestic engineering contractors and power equipment companies “going global”. Domestic manufacturers already have comprehensive UHV equipment manufacturing capabilities. With the investment in the second phase exceeding US$2.2 billion, it is expected to drive UHV equipment exports worth nearly RMB 5 billion.

Strongly Recommends UHV-Related Investment Targets

The general tone of stabilizing economic growth will promote the accelerated implementation of UHV projects. As of now, two AC and two DC UHV projects have been approved this year, and it is highly likely that two AC and five DC UHV projects will be approved for the whole year. The overseas deployment of UHV equipment may soon be realized, and the vast overseas market will break through the industry’s growth ceiling. Combined with the fact that the former Premier attended the foundation-laying ceremony of the first phase of the Belo Monte Project during his visit to South America, and that power equipment is listed as a key area and industry in Made in China 2025 and Guiding Opinions on Promoting International Capacity and Equipment Manufacturing Cooperation, we believe that UHV will embrace enormous development opportunities.