Electrical Equipment / Components & Telecoms

According to the observation report of Huacheng import and export data, from the perspective of the global industrial chain, the European Union proposed to develop the photovoltaic and electric vehicle industry with huge volume, which should be a big positive information for the relevant upstream and downstream industries in the world, especially in China.

According to Huacheng Import and Export Data Observation, the EU's "Digitization of Energy System" plan will be officially announced in the near future, which requires the EU to invest 565 billion euros in infrastructure by 2030 to achieve its green plan. According to the plan, solar panels will be installed on the roofs of all commercial and public buildings in the EU by 2027; Solar panels will be installed in all new residential buildings in the EU before 2029; 10 million heat pumps will be installed in the next five years; By the end of 2030, 30 million zero emission vehicles will be put on the road.

For the EU, the "Digital Energy System Plan" reflects its determination to continue to promote the low-carbon climate transition policy, and responds to the previous market's query that the EU should give up carbon neutrality. Previously, Europe had invested in natural gas projects to expand energy supply, which was questioned as deviating from its commitment to climate change. However, the emergence of the "Digital Energy System Plan" indicates that more and more European countries have made a more explicit transition to renewable energy, which is intended to help the EU speed up its dependence on Russian oil and gas. On the other hand, if the plan is promoted, the increase in the proportion of renewable energy in the future will also challenge the energy security of the EU power system. It is necessary to ensure the stability of energy supply and solve the energy security problems with large fluctuations in the energy mix. Considering the growth of power demand in the EU region, the EU needs a more flexible and digital intelligent energy system to adapt to renewable energy systems that are vulnerable to weather changes and guide electricity to the places where the EU needs most. At the same time, the EU will set up a group before March next year to promote energy data sharing between EU member states and enterprises. The EU will also support transmission system operators to create a "digital twin" of the grid, which will help improve the efficiency of the grid. The "digitalization of energy system" plan marks a new stage in the evolution of the European energy market, which will effectively promote the wide application of digital technology, promote the efficient application of energy and the development and utilization of new energy. Huacheng Import and Export Data Observation Report.

From the perspective of the global industry chain, the European Union proposed to develop a huge photovoltaic and electric vehicle (EV) industry, which should be a big positive information for the relevant upstream and downstream industries in the world, especially in China. China is currently the largest exporter of photovoltaic modules. With the clear promotion of European energy transformation, the demand for photovoltaic installed capacity in overseas markets will continue to grow, and the export scale of photovoltaic modules will continue to expand. The cost of manufacturing PV modules in Europe is too high, and it takes a long time to establish a complete supply chain. Therefore, at present, PV modules in Europe rely heavily on imports from China, and Europe is also the largest export market for Chinese PV module manufacturers. Huacheng Import and Export Data Observation reported that, according to the data of CPIA (China Photovoltaic Industry Association), in the first half of 2022, China's total export of modules reached 78.6GW, and the export volume of modules reached $22.02 billion, a sharp increase of 116.1% year on year, of which the export volume to Europe reached more than half. On May 18, 2022, the European Union Executive Committee announced the REPowerEU energy plan. It is planned that by 2025, the cumulative installed PV capacity in EU countries will reach 320GW, and by 2030 it will reach 600GW. By 2021, the cumulative PV installed capacity in Europe is 183.6GW. Therefore, the EU's "energy system digitalization" plan will accelerate the export growth of China's photovoltaic modules, which is conservatively estimated to bring an export volume increase of 100 billion dollars to China's photovoltaic market.

For the EV market, in 2021, the sales of new energy vehicles in the EU will account for 34.7% of the global market share, and the sales of pure electric vehicles will be 1.176 million, accounting for 55% of the total; The sales volume of plug-in hybrid vehicles is 965000, accounting for 45%. However, in the first half of 2022, affected by the conflict between Russia and Ukraine and the energy crisis, the sales of new energy vehicles in Europe grew slowly, and the sales in the second quarter of 2022 were basically flat compared with the first quarter. If the "digitalization of the energy system" plan continues to be promoted, 30 million zero emission vehicles will be put on the road by the end of 2030, which will promote the European new energy vehicle industry to gradually return to the normal track, and the European new energy vehicle market space will continue to expand. For the global leading companies of power batteries and lithium battery materials that can enter the international supply chain, these companies will benefit from the EU's new energy vehicle capacity, Huacheng Import and Export Data Observation Report.