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China's Highway Network Construction Benefits Power Facilities Industry
In recent years, Dai Dongchang, the chief planner of the Ministry of Transport, announced at a press conference on the National Highway Network Planning (2013–2030) that 78.5% of the national highway network has already been completed and is expected to be largely finished by the end of the 12th Five-Year Plan period. This ambitious infrastructure project not only reflects China’s commitment to modernizing its transportation system but also highlights the broader economic impact of large-scale infrastructure development.
Infrastructure projects, such as expressway construction, are known for their multiplier effect. They stimulate overall social demand and boost national income by several times the amount of initial investment. A well-developed infrastructure system is a crucial foundation for long-term sustainable growth in any country or region. It supports economic activities, improves connectivity, and enhances quality of life.
According to the "National Highway Network Planning (2013–2030)," China plans to invest 4.7 trillion yuan over the next decade to build a national highway network totaling 400,000 kilometers by 2030. The ordinary national roads will cover approximately 265,000 kilometers—more than double the original target—while highways will reach around 118,000 kilometers, an increase of 33,000 kilometers. This massive expansion will have significant ripple effects across various industries, particularly those related to power facilities and electrical equipment.
For instance, once the roads are completed, there will be a growing need for lighting systems, which can drive the sales of LED technology. Recently, Taiwan-based Kangshu signed a cooperation agreement with Dongguan and Shengmao Optoelectronics, a leader in traffic signs and LED street lamps in Henan. Together, they plan to establish a joint venture to tap into the mainland Chinese market for LED street lights and outdoor lighting. This initiative is expected to generate billions in revenue, with potential output and market prospects far exceeding current levels.
The installation of LED street lights also boosts demand for wire and cable, as these systems rely on electrical supply to function. Increased demand for cables will, in turn, promote the upgrading of the power grid. With the advancement of smart grid technology, which is gaining widespread acceptance, China is accelerating its smart grid initiatives. The State Grid Corporation of China set 2016–2020 as the key phase for smart grid development, aiming to build a unified and strong smart grid that significantly improves resource allocation, safety, efficiency, and user interaction.
As smart grids become more prevalent, road-related power systems will also evolve. The period from 2016 to 2020 aligns with the completion of the 12th Five-Year Plan, during which China's expressway network is expected to be largely completed. This lays a solid foundation for the implementation of related power infrastructure projects. In essence, the expansion of highway mileage will drive growth in numerous power-related industries.
Moreover, the increase in highway length will significantly boost the sales of low-voltage electrical equipment. To ensure the safe operation of tunnels and bridges, real-time monitoring of the power grid is essential. As expressways expand, more bridges and tunnels are being electrified, especially with high-power fans, elevators, and non-linear loads like dehumidification systems. These factors contribute to power quality issues, making real-time monitoring necessary. This requires the use of intelligent low-voltage electrical equipment and advanced solutions, such as embedded systems-based measurement and control devices designed for low-speed highways.
Overall, the expansion of China's highway network brings substantial benefits to the power industry. It reflects the continuous improvement of transport infrastructure and demonstrates the government's focus on building a robust national infrastructure. It is a vital step toward creating a beautiful and sustainable China.