The determination of power grid construction in the rural network-based distribution network and DC UHV. Power grid planning to be submitted to the State Council in March 2012, the short term more certainty for the rural network-based distribution network industry and long-distance transmission technology in the DC UHV. The exchange of special high-voltage and other controversial industries will be more controversial focus of grid planning, certainty to be further confirmed.

"Nuclear Safety Plan" difficult to reply during the year. Nuclear Safety Administration in charge of the "nuclear safety program" requirements are the most widely, because the current controversy is still more, the possibility of this year is very small, so the restart of nuclear power construction of new projects to be next year. At the same time three generations of nuclear power technology AP1000 and EPR project is not yet mature operation project, and construction and operation of the project for a long time, nuclear power installed capacity in 2020 planning than the previous planning capacity is bound to decline.

Wind power production capacity, growth rate decreased year by year. In accordance with the 2020 target of 150 million kilowatts of wind power installed capacity calculation, when the proportion of wind resource development will reach 75%. According to this plan annual installed capacity of only 10 million kilowatts, well below the 2010 additional 16 million kilowatts of installed capacity, and the current fan capacity of 40 million kilowatts -5000 million kilowatts, a serious surplus. In addition, the National Energy Board officially issued the "Interim Measures for the development and construction of wind power," which means local wind power projects have to be approved by the Energy Board. In the overseas market can not effectively expand the case, the wind power industry is bound to usher in the price war led by the merger and reorganization.

Photovoltaic pressure on the European market, domestic production is now signs of excess. China's PV market presents a typical two out, the demand for foreign policy by the huge impact. Due to Europe, Germany, Italy, abatement of photovoltaic subsidies, and the deterioration of the debt crisis in Europe, a great impact on European market demand. At the same time, the domestic battery, components and polysilicon and other sectors in 2009, 2010, a substantial capacity building, signs of oversupply more and more obvious.

Investment advice: power equipment and new energy short-term lack of catalyst, has yet to be introduced. Recommendations in the current price fell sharply, the valuation of the situation under the attention of the fixed value of relatively high rural network, DC UHV and smart grid industry.

Investment risk: the broader market continued downside risks; industry investment can not effectively amplify the risk.