In 2026, driven by the policies for stable growth and the construction of the new power system, the power equipment industry in China maintained a steady growth trend. According to the "Power Equipment Industry Growth Stabilization Work Plan (2025-2026)" issued by the Ministry of Industry and Information Technology and other three departments, the average annual revenue growth rate of traditional power equipment is expected to be approximately 6%, while the revenue of new energy equipment continues to increase, and the industry has entered a new stage of high-quality development.
      The installation of new energy sources continues to increase, becoming the core growth engine. This year, the new installations of photovoltaic and wind power have maintained a high growth rate, and the proportion of non-fossil energy power generation has steadily increased. Large-scale wind and photovoltaic bases, distributed photovoltaic power, and offshore wind power are being accelerated, directly driving the strong demand for transmission and transformation products such as transformers, box-type substations, and switchgear. Industry data shows that orders for core equipment such as transformers are full, and some enterprises have placed orders as far as 2027. Overseas demand is also growing simultaneously, and the pace of China's power equipment going global is accelerating.
      The energy storage policy has reached a milestone, with the market-oriented mechanism being implemented. In 2026, new energy storage was listed as an emerging pillar industry. The capacity-based electricity price mechanism was fully implemented, and independent energy storage received stable income guarantees. Energy storage has shifted from a supporting role to a core component of the power system. "Photovoltaic + energy storage + step-up station" integrated projects have become the mainstream, promoting the rapid popularization of prefabricated container-type substations. Prefabricated containers, due to their advantages of high integration, fast construction, and small land occupation, are widely used in new energy stations, data centers, and industrial parks, and have become the industry standard.
      Technological upgrades and intelligent transformation are accelerating. Technologies such as ultra-high voltage flexible direct current, intelligent distribution, and low-loss transformers continue to make breakthroughs. Equipment is upgrading towards higher efficiency, energy conservation, and intelligence. Prefabricated cabins are gradually integrating functions such as temperature control, fire protection, and remote monitoring to meet the requirements of high-standard grid connection. At the same time, AI is deeply integrated with grid dispatching and equipment operation and maintenance, enhancing the safety and stability of the system operation and promoting the industry's transformation from manufacturing to "manufacturing + services".
      The market landscape is becoming increasingly concentrated towards the top players, and one-stop solutions have become the key to competition. As projects become larger and more standardized, enterprises with comprehensive capabilities covering research and development, production, delivery, and operation and maintenance have emerged as the clear winners. The overseas market has become a new growth point. Domestic enterprises, leveraging their cost-effectiveness and rapid delivery capabilities, have seized market share in global power grid upgrades and new energy construction.
      Overall, in 2026, the power equipment industry will be driven by four factors: favorable policies, strong demand, technological innovation, and overseas expansion. The high growth momentum in sub-sectors such as transformers, prefabricated cabinets, and energy storage integration will continue. Companies can only seize the opportunities in the construction of the new power system by persisting in technological innovation, quality improvement, and global expansion, and achieve sustained and stable development.