The underutilization of outdated energy equipment is a "burden," but when utilized effectively, it becomes a "treasure." The "Implementation Plan for Large-scale Equipment Renewal in Key Energy Areas," organized by the National Development and Reform Commission and the National Energy Administration, clearly states that by 2027, the scale of equipment investment in key energy areas will increase by more than 25% compared to 2023. The plan focuses on promoting the "three-in-one" transformation of coal-fired power units, which includes energy-saving, heating, and flexibility upgrades, as well as equipment renewal and technological transformation in the fields of power transmission and distribution, wind power, photovoltaics, and hydropower. What signals does the renewal of energy equipment convey?

Every piece of equipment has a lifecycle. As the years of use increase, a batch of energy field equipment is entering an "aging" phase, bringing some negative impacts. On one hand, the performance of old equipment declines, leading to lower energy conversion efficiency, causing energy waste, and increasing the operating costs of enterprises. Frequent repairs also affect the production progress and efficiency of enterprises. On the other hand, due to outdated technology or improper maintenance, old equipment may exceed pollutant emission standards, easily causing adverse environmental impacts. In the energy system, the decline in performance of old equipment may lead to a decrease in the stability of the entire system, increasing the risk of system failures and adversely affecting energy security.

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It is particularly important to promote large-scale renewal of energy equipment at this stage. From the perspective of energy security, against the backdrop of a complex and changing global energy situation, the renewal of energy equipment will enhance the stability and reliability of the energy system, significantly improve energy utilization efficiency, reduce energy waste, help enhance China's energy self-sufficiency, and strengthen the ability to respond to external energy security challenges.

From the perspective of energy transition, the renewal of energy equipment is an important means to promote green and low-carbon transformation. Promoting clean energy equipment, phasing out outdated production capacity equipment, and recycling and reusing scrap equipment can effectively reduce carbon emission intensity, accelerate the construction of a clean, low-carbon, and safe and efficient energy system, and promote the economy to develop in a green, low-carbon, and circular direction.

From the perspective of the pulling effect, the renewal of energy equipment requires a large amount of capital investment, a vast market, and involves many links in the industrial chain, which will directly stimulate the growth of related manufacturing and service industries, and cultivate new quality productive forces. At the same time, it creates a large number of employment opportunities, especially in the fields of equipment manufacturing, installation, and maintenance. The application of new energy equipment will also give birth to new business models and employment opportunities, providing momentum for high-quality economic development.

Overall, promoting large-scale equipment renewal in key energy areas is an important measure to better coordinate high-quality development and high-level security. For old equipment, it is necessary to timely update and replace or carry out technological transformation to improve equipment performance and usage benefits, turning a "burden" into a "treasure."

The renewal of energy equipment is not a one-size-fits-all approach; the encouraged policies this time show two clear main lines.

First, expand domestic demand in the clean energy field. New energy is the main body of energy substitution, and in recent years, the main driving force of investment in China's energy field has come from new energy. At present, China's new energy equipment manufacturing industry is in a downcycle, with a phased mismatch between market supply and demand, and some enterprises are facing operational difficulties. Further creating market increments and stimulating domestic demand is an important measure to help the industry overcome difficulties.

Since China introduced the Renewable Energy Law in 2005, wind and photovoltaic power have entered a period of rapid development. The design life of wind and photovoltaic equipment is usually 20 to 25 years, and many units are gradually entering the renewal and elimination period. At the same time, in recent years, wind and photovoltaic technologies have been iterated and upgraded multiple times, and the power generation efficiency and capacity have been greatly improved. Encouraging the replacement of original small-capacity wind turbines with mainstream models with large unit capacity and advanced technology, supporting the application of advanced photovoltaic components, and promoting the development of photovoltaic component recycling and reuse technology can achieve quality and efficiency improvement of wind, light, land, and power grid resources. In addition, improving the charging performance of charging piles can help the sales of new energy vehicles. The renewal of equipment in the new energy field has become an objective need and can open up new space for industry development.

Second, ensure energy security and high-level utilization. Supply security is the premise of energy transformation. At present, China has entered a stage of high-proportion new energy. To escort new energy and build a new type of power system, it is necessary to transform traditional power generation equipment and power grids. For thermal power equipment, it is necessary to continue to promote the "three-in-one" transformation, further reduce the energy consumption of coal-fired power units, and enhance flexible adjustment capabilities. Support the low-carbon development of coal power and accelerate the construction of digital intelligent power plants. For hydropower equipment, it is necessary to improve the flexibility and wide-load operation capability of hydro turbine generator units, improve the operation efficiency of old units, and better adapt to the operation needs of the new type of power system. For power transmission and distribution equipment, it is necessary to carry out overall transformation of old substations and power transmission lines to improve the safe operation capability of the power grid. Moderately advance the construction of distribution networks to enhance their carrying capacity and meet the development of distributed new energy and electric vehicle charging infrastructure.Funds are a key element for enterprises to update their energy equipment. Relevant departments should substantially increase financial support for equipment renewal and technological transformation in key energy fields, guide financial institutions to strengthen docking with related enterprises and projects, and play a well-coordinated "combination of policies" including fiscal, financial, and investment policies.