As summer approaches and temperatures rise, Taiwan's energy issues, especially concerns about potential power shortages, have become a hot topic. To improve the reliability of the power supply, Taiwan Power Company (TPC) introduced a 10-year "Power Grid Resilience Construction Plan" in September 2022. As a result, the companies in heavy electrical industry has benefited and the stock price has increased earlier this year. Below we will be introducing how these companies strengthen Taiwan's power grid and apply the latest technology to distribution systems, and how they affect everyone's daily lives.
What is Heavy Electrical Equipment?
Heavy electrical equipment refers to large-scale electrical systems that handle high voltage, large currents, and high power, primarily divided into three sectors: power generation, transmission, and distribution.
- Power Generation: Includes generators and power plants
- Power Transmission: Covers substations, transmission lines, and cables
- Power Distribution: Involves distribution transformers, switchboards, and distribution lines
These large-scale systems are used in infrastructure, power supply systems, and industrial production, playing a crucial role in ensuring a stable power supply.
Let’s dive into some of the key areas based on recent trends and introduce the current landscape and related companies in each field.
The Heavy Electrical Industry Category
Electric Wires and Cables
The growth of renewable energy, smart grid construction, and the round-the-clock operation of high-tech factories demand more durable and capable cables. Companies supplying these new products include Hold-Key (1618-TW), China Wire (1603-TW), Walsin Lihwa (1605-TW), Hua Eng Wire and Cable (1608-TW), Ta Ya Electric Wire& Cable (1609-TW). These companies are among the few able to handle orders for 161 kV and 345 kV high-voltage cables in Taipower’s grid projects.
Smart Grids
Unlike traditional power grids, smart grids use information technology to collect data on electricity supply and consumption, optimizing energy distribution, enhancing efficiency, and integrating renewable energy. This new system has drawn attention to companies involved in transmission and distribution engineering, such as the four famous companies in the industry: Chunh-Hsin (1513-TW), Fortune (1519-TW), Allis (1514-TW), Shihlin (1503-TW) and Tatung (2371-TW). These firms have been leaders in the recent rally of heavy electrical stocks.
Smart Meters
Smart meters can record real-time electricity usage and transmit data to TPC, eliminating the need for manual meter reading. It can also help with automatically power outages reporting. TPC’s Advanced Metering Infrastructure (AMI) project aims to replace traditional meters with smart ones by 2035. Companies benefiting from this project include AcBel Polytech (6282-TW), Das Technology (6648-TW)’s subsidiary Advanced Meter, Chunh-Hsin (1513-TW), and Tatung (2371-TW).
Conclusion
By now, you’ve likely gained a basic understanding of how the heavy electrical industry applies its systems to power engineering. Beyond the demand from Taipower and high-tech factories, global trends in energy transition are also boosting export momentum. For those interested in the future of energy development, diving deeper into the heavy electrical industry could prove fruitful!
