The National Energy Administration issued the "2020 Energy Work Guidance" on the 22nd to improve the security and intelligence level of power grids. Orderly construction of key projects for trans-provincial and trans-regional power transmission channels, rational matching of power transmission, optimization of scheduling, and improvement of channel operation efficiency and the proportion of non fossil energy power generation transmission. Adjust and optimize the construction planning of regional main grid structures, accelerate the construction of key projects, and improve the power supply guarantee capacity. Promote the construction of smart grids in regions such as the Yangtze River Delta, the Greater Bay Area of Guangdong, Hong Kong, and Macao, the Shenzhen Socialist Pilot Demonstration Zone, and the Hainan Free Trade Zone (Hong Kong). Strengthen the construction of charging infrastructure and improve the charging guarantee ability of new energy vehicles.

China Southern Power Grid plans to invest 1.2 billion yuan in the construction of charging infrastructure in 2020, with a cumulative investment of 25.1 billion yuan in the next four years. It plans to build 150 large-scale centralized charging stations and 380000 charging piles, more than 10 times the existing number. On April 14, the State Grid of China announced that it planned to invest 2.7 billion yuan in the construction of charging piles in 2020, adding 78000 new charging piles, with a year-on-year increase of more than 10 times in the new construction scale.

Everbright Securities believes that with the rapid growth and scale expansion of the charging industry in recent years, the vehicle to pile ratio in China has increased from 7.8:1 in 2015 to 3.5:1 in 2019. Various industrial plans and subsidy policies have been introduced to support the healthy development of the industry. According to the annual growth rate of 30% - 40%, it is expected that the number of new energy vehicles will exceed 5 million in 2020 and 20 million in 2025. The new infrastructure mainly focuses on public charging piles. It is assumed that the proportion of public piles will increase to 45% - 50%. It is assumed that public/private piles will account for 45%/55% in 20-25 years, respectively. It is assumed that the proportion of vehicle piles will range from 2.5 to 3.5, and the proportion of DC charging piles will be 45% - 60%. It is estimated that the market size of charging piles will be between 982 and 183.1 billion yuan in 2020-2025.