Promoting large-scale equipment updates and exchanging old for new consumer goods is a major deployment made by the Central Committee of the Communist Party of China and the State Council with a focus on high-quality development. It can not only promote consumption, drive investment, increase advanced production capacity, improve production efficiency, but also promote energy conservation and carbon reduction, reduce safety hazards, benefit the people and enterprises, and achieve multiple benefits with one action. This is a significant benefit.
Taking equipment as an example, last year, the investment scale in key areas such as industry and agriculture in China was about 4.9 trillion yuan. With the deepening of high-quality development, the demand for equipment updates will continue to expand, and it is preliminarily estimated that it will be a huge market with an annual scale of over 5 trillion yuan.
In terms of implementing equipment update actions, we will vigorously promote the updating and technological transformation of production equipment, energy consumption equipment, power generation and distribution equipment, etc. Exploring the development of remanufacturing businesses in emerging fields such as wind power and photovoltaics in implementing recycling and reuse actions. Accelerate the research and development of residual life assessment technology for wind power, photovoltaic, power battery and other product equipment, and orderly promote the cascading utilization of product equipment and key components. In terms of implementing standard improvement actions, we will improve standards for upgrading and retiring wind turbines, photovoltaic equipment, and products.
Vigorously promoting the updating and technological transformation of power generation, transmission and distribution equipment will bring huge investment and renewal opportunities to the power industry. There are numerous upstream industries related to power generation, transmission, and distribution equipment, which can further drive the demand of multiple industrial industries such as electrical equipment and metal smelting. The new energy industry is an important foothold for developing new quality productivity. For some wind and photovoltaic existing units with relatively backward technological level and long service life, they can be refurbished through remanufacturing technology to achieve effective utilization of resources.
On the one hand, the increasing demand for equipment updates and technological upgrades will provide market space for equipment manufacturers and engineering technology service providers. On the other hand, the research and development of residual life assessment technology for product equipment and its cascading utilization bring development opportunities for circular economy and green industry.