The Ministry of Industry and Information Technology (MIIT) and the State Administration for Market Regulation issued a plan to improve Energy Efficiency of Electric Motors (2021-2023), according to the website of the Ministry of Industry and Information Technology on Tuesday. The plan calls for accelerating the promotion and application of high-efficiency and energy-saving motors, including upgrading stock motors to conserve energy and speeding up the elimination of backward and inefficient motors that do not meet current national energy efficiency standards. In addition, the plan also emphasizes the use of more efficient and energy-saving motors.
The plan is formulated to further strengthen the energy-saving management of key energy-using equipment, accelerate the promotion and application of high-efficiency energy-saving motors, continuously improve the efficiency of energy and resource utilization, promote green and high-quality industrial development, and help achieve carbon neutrality.
The plan defines the main goal: by 2023, the annual output of high-efficiency energy-saving motors will reach 170 million kilowatts, accounting for more than 20% of the in-service high-efficiency energy-saving motors, achieving 49 billion kilowatt hours of annual electricity saving, equivalent to saving 15 million tons of standard coal and reducing carbon dioxide by 28 million tons. Promote the application of a number of key core materials, components and technological equipment, form a number of backbone advantageous manufacturing enterprises, and promote the high-quality development of the motor industry.
Among them, to speed up the promotion and application of high-efficiency energy-saving motor, the plan said, to carry out energy-saving transformation of stock motor. We will encourage key industries such as iron and steel, non-ferrous metals, petrochemicals, chemicals, building materials and textiles to carry out energy-saving diagnostics on energy-using equipment, and assess the potential of advanced energy-saving technology and equipment for wider application based on their energy efficiency levels and operation and maintenance. We will guide enterprises to upgrade key energy-using equipment such as motors, give priority to high-efficiency and energy-saving motors, and speed up the elimination of backward and low-efficiency motors that do not meet the current national energy efficiency standards. Enterprises are encouraged to carry out matching energy saving transformation and operation control optimization for motor systems such as fans, pumps and compressors with low efficiency.
In addition, the plan said more efforts will be made to use high-efficiency and energy-saving motors. By subdividing the load characteristics and different working conditions, the motors with grade 2 energy efficiency and above are encouraged for general equipment such as fans, water pumps, compressors and machine tools. For variable load operation, promote grade 2 energy efficiency and above frequency conversion speed regulating permanent magnet motor. Low speed direct drive and high speed direct drive permanent magnet motor are encouraged for transmission system with gearbox and coupler. Vigorously develop permanent magnet external rotor electric roller, integrated screw compressor and other motor and load equipment structure integration design technology and products.
According to the plan, enterprises should be guided to upgrade key energy-using equipment such as motors, give priority to high-efficiency and energy-saving motors, and speed up the elimination of backward and low-efficiency motors that do not meet the current national energy efficiency standards. Increase the application of high efficiency and energy saving motor. For fans, water pumps, compressors, machine tools and other general equipment, encourage the use of grade 2 energy efficiency and above the motor. For variable load operation, promote grade 2 energy efficiency and above frequency conversion speed regulating permanent magnet motor. Low speed direct drive and high speed direct drive permanent magnet motor are encouraged for transmission system with gearbox and coupler. Vigorously develop permanent magnet external rotor electric roller, integrated screw compressor and other motor and load equipment structure integration design technology and products.
Dongwu Securities research team pointed out that the traditional motor is gradually replaced by rare earth permanent magnet motor is economically significant. At present, the proportion of special motors in China is relatively low, only 20%, and the proportion of rare earth permanent magnet in special motors is also low. Assuming that the proportion of rare earth permanent magnet motors is 3% in 2020, it is expected that the permeability of new rare earth permanent magnet motors will increase to 25% in 2025.
In addition, fan installation is expected to increase. According to the "Wind Power Partnership Action Plan", the capacity of wind power in rural areas in the 14th Five-year Plan is as high as 50GW, which is expected to start operation by the end of the year. Due to the end of onshore wind power and raw material costs rose significantly, Soowu Securities research team is expected to continue to rise in 2022 industry boom, fan megawatt model promotion accelerated, catalytic demand continued to grow. Thanks to the policy support under the dual carbon target and the realization of affordable Internet access with the help of large-scale fan cost reduction, the number of newly installed fans will reach 82GW in 2025, and the annual compound growth rate will be 20% from 2021 to 2025. Due to the high energy efficiency of rare earth permanent magnet motors, it is predicted that the permeability of direct drive permanent magnet motors in fans will increase from 30% in 2020 to 50% in 2025.
At present, the industry concentration of energy-saving equipment is not high, there are many small and medium-sized enterprises, the quality is uneven, disorderly competition is common, and the existence of ineffective products increases the cost of trial and error for customers so that the real strength of enterprises can not be played. In addition, manufacturers of traditional fans and water pumps gradually increase investment in technology research and development, and their products are also transformed from ordinary equipment to high-efficiency energy-saving equipment. The entry of traditional enterprises with strong financial strength and technical strength will also have a certain impact on the market layout and share of the industry, and will further intensify the degree of competition in the industry.
Energy-saving equipment in high-efficiency energy-saving centrifugal fan and water pump, energy-saving combustion products, and other energy-saving equipment strength, precision, operation efficiency, and reliability requirements. The technology involves the cross-application of aerodynamics, fluid mechanics, fluid mechanics principle, material mechanics, combustion science, thermodynamics, heat transfer, computer-aided design and manufacture, noise science, and other disciplines. According to different needs, different working conditions, special environment, specific industry standards, continuous testing and debugging, production to meet the personalized needs of customers energy-saving equipment. Therefore, new entrants to the industry face higher technical barriers.
The design, production, and testing of energy-saving equipment products, such as high-efficiency energy-saving centrifugal fans, high-efficiency energy-saving centrifugal pumps, and energy-saving combustion products, involve multiple disciplines, require the cooperation of professionals in multiple fields, and require higher professional background, design experience and practical experience of the personnel. At present, in China's fluid machinery industry, there are few talents with rich experience in RESEARCH and development, design, and technical support, and it takes a certain amount of time to develop a good technical worker. Similarly, the shortage of talents and experts with technical experience in relevant industries is a bottleneck restricting the development of this industry. Therefore, for new entrants, technical strength and human resources become barriers to entry.
The production process of energy-saving equipment involves multiple production and processing procedures and requires a variety of machines and equipment. Enterprises need to invest a lot of money to update and maintain production equipment, so as to maintain the normal production and upgrading of products. Secondly, some energy conservation renovation projects adopt contract energy management mode, which requires advance payment of funds in the early stage, resulting in the long-term occupation of funds. In addition, new product research and development investment also need to invest a lot of money. Advanced equipment and facilities, and plant construction also need capital-intensive investment. In order to meet the needs of market and enterprise development, enterprises need to continuously invest to expand production scale. Therefore, new enterprises need certain capital strength and multi-channel financing to carry out large-scale investment and financing construction and production, thus constituting a capital barrier.
Enterprises that entered the energy-saving equipment industry earlier have established a good reputation among downstream customers for their products, forming a certain first-mover advantage. Secondly, fans, water pumps, and other energy-saving equipment have high requirements for safety, reliability, and stability. Therefore, customers tend to purchase from enterprises with good industry brands and market reputations. Downstream customers in the process of examination and approval of the supplier's technology research and development, production processes, quality management, working environment, and other aspects are put forward strict requirements, only the rich project experience and sophisticated technology, excellent energy-saving equipment manufacturing enterprises to enter the list of qualified suppliers of large industrial enterprises, which is likely to obtain large-scale production line project of form a complete set of equipment orders. At present, there are many mature brands occupying a certain market share in China, and new enterprises will face certain brand barriers.