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State Grid Corporation of China

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State Grid Corporation of China
国家电网公司
Company typeState-owned enterprise
IndustryElectric utility
Founded2002 (2002)
Headquarters
Xicheng District, Beijing
,
China
Area served
China
Key people
Liu Zhenya (President & CEO)
ServicesElectrical power transmission
RevenueUS$ 265.962 billion (2011)[1]
78,697,281,872 renminbi (2018) Edit this on Wikidata
US$ 5.678 billion (2011)[1]
Total assetsUS$ 351.38 billion (2011)[1]
Total equityUS$ 135.10 billion (2011)[1]
OwnerGovernment of the People's Republic of China
Number of employees
1,583,000 (2011)[1]
Websitewww.sgcc.com.cn/ywlm/default.shtml

State Grid Corporation of China (SGCC) (simplified Chinese: 国家电网公司; traditional Chinese: 國家電網公司; pinyin: Guójiā Diànwǎng Gōngsī) is the largest electric utilities company in the world.[2] It transmits and distributes power in China. The power distributor is headquartered in Xicheng District, Beijing[3] and manages distribution from subsidiaries in Northern China, Northeastern China, Eastern China, Middle China and Northwestern China.

After the electricity "Plant-Grid Separation" reform in early 2002, the assets of State Electric Power Corporation (国家电力公司) were divided into the five "power generation groups" that retained the power plants and five regional subsidiaries belonging to the State Grid Corporation of China in Beijing. The company is the seventh largest in the world according to the 2011 Fortune Global 500 ranking.

History

China began an initiative to reform the country's power sector in a three-stage process in 1986.[4] In the third and final stage in March 2002 the State Council of the People's Republic of China put into effect a plan to restructure the country's electric power system in order to create competition and separate generation and transmission functions.[5] The State Grid Corporation of China was founded on December 29, 2002, when the restructuring divided the former State Power Corporation of China into two grid companies, five generation groups and four accessorial business companies.[6] Two grid companies were created including the State Grid Corporation of China and a smaller China Southern Power Grid Corporation.[7] At its creation, the company had a generation capacity of 6.47 gigawatts.[5]

In 2003 and progressively so through the early 2000s, electrical shortages caused the government to institute rolling blackouts. The State Grid Corporation estimated there were 1 trillion yuan in losses from 2002 to 2005.[5] The State Grid Corporation of China ran the first 1,000-kilovolt alternating current power line between Northern Shanxi and center Hubei in January 2009. In 2012 it began operation of a 800-kilovolt direct current line that sends hydropower from western Sichuan to Shanghai. It also has an alternating current loop line in the Yangtze river delta, and three longitudinal alternating current lines that bring power to Southern China from the Northern region.[8]

The State Grid Corporation was involved in a multi-phase smart-grid project for China's electrical grid planned for 2011-2015.[2] China's smart grid efforts are different from those in the US in that its plans heavily use ultra high voltage (UHV) lines. Several UHV construction projects began in 2012 to bring UHV power lines across Huainan, Wannan, and Shanghai and another from Xilingol League to Nanjing. By 2015, the company plans to have three more horizontal UHV lines through West Inner Mongolia to Weifang, from Central Shanxi-Xuzhou to Yaan-southern Anhui and 11 other lines by 2015.[8]

Corporate social responsibility

China State Grid office building in Liujiaxia Town (Yongjing County), just downstream from the Liujiaxia Dam

In 2006 the State Grid Corporation of China ran electric lines to 545,000 previously unconnected households in rural areas, offering the occupants free power indefinitely in a project called "Power for All". Families were able to buy their first refrigerators, televisions and radios, dishwashers, computers, washing machines, water boilers, heaters and air conditioning units. Farmers have stopped hauling water by installing automated irrigation systems. Over the 2007-2008 period, SGCC plans to spend $3 billion to do the same for 4.5 million of China's poorest people in 18 provinces.

On December 12, 2007, 2 consortia bid for a 25-year license to run the Philippines power grid - privatization of the management of the National Transmission Corporation (Transco), the consortium of Monte Oro Grid Resources Corp., led by businessman Enrique Razon, comprising the State Grid Corporation of China, and Calaca High Power Corp., won an auction conducted by the Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San Miguel Energy, a unit of San Miguel Corporation (bid of $3.905 billion), Dutch firm TPG Aurora BV and Malaysia’s TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO remarked: “We are very happy about the successful turnout of the bidding for TransCo. PSALM handled the privatization of the government’s transmission business with utmost transparency and judiciousness."[9][10][11]

In 2010, the company is about to invest US$11 billion in the Sarawak, Malaysia.[citation needed]

See also

References

  1. ^ a b c d e State Grid
  2. ^ a b Bojanczyk, Kamil (October 9, 2012), Reprint: China and the World’s Greatest Smart Grid Opportunity, GreenTech Media, retrieved 2012-10-10
  3. ^ "Contact Us." "State Grid Corporation of China. Retrieved on July 8, 2010. "ADD: No. 86, West Chang'an Street, Xicheng District, Beijing City" - Address in Chinese: "地址 北京市西城区西长安街86号 邮编 100031."
  4. ^ Gee, Robert, China's power sector: Global economic and environmental implications {{citation}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  5. ^ a b c The Xinfeng Power Plant Incident and Challenges for China's Electric Power Industry (PDF), IEEJ, February 2007, retrieved 10 October 2012
  6. ^ Chen Wenying (2006). China's Energy Outlook. Guida Editori. ISBN 978-981-256-748-2. Retrieved 10 October 2012.
  7. ^ China’s power sector revolution stalled, October 14, 2010, retrieved October 10, 2012
  8. ^ a b China grid eyes building 2 new UHV power lines this yr, Reuters, August 13, 2010, retrieved 2012-10-10
  9. ^ Manila Times, RP-China group wins $3.95-B TransCo bid
  10. ^ Reuters, Two groups vie for multi-billion dlr Manila power deal
  11. ^ Abs-Cbn Interactive, Monte Oro consortium wins TransCo bidding
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