Industry Electric utility Headquarters Beijing, China Total assets 478.5 billion USD (2015) Type of business State-owned enterprise | Revenue 329.6 billion USD (2015) Founded 2002 Number of employees 1,583,000 | |
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Area served China
Philippines (through National Grid Corporation of the Philippines)
Australia
Brazil
Italy Key people Shu Yinbiao (President & CEO) Products Electrical grid, Electric power transmission Services Nuclear power transmission Net income US$ 10.201 billion (2015) Subsidiaries Jemena, China Power Finance Co., Ltd. | ||
State grid corporation of china worlds largest electric utility
State Grid Corporation of China (SGCC; Chinese: 国家电网公司; pinyin: Guójiā Diànwǎng Gōngsī) is the largest electric utility company in the world. It is state-owned and transmits and distributes power in China and in overseas markets. The power distributor is headquartered in Xicheng District, Beijing and manages distribution from four regional subsidiaries.
Contents
- State grid corporation of china worlds largest electric utility
- History
- Controversy
- Overseas investments
- Subsidiaries
- References
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 second largest in the world according to the 2016 Fortune Global 500 ranking. It has 1.9 million employees, 1.1 billion customers and revenue of 329.6 billion dollars.
History
China began an initiative to reform the country's power sector in a three-stage process in 1986. 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. 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. The two grid companies created were the State Grid Corporation of China and a smaller China Southern Power Grid Company. At its creation, the company had a generation capacity of 6.47 gigawatts.
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. 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 an 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.
The State Grid Corporation was involved in a multi-phase smart-grid project for China's electrical grid planned for 2011-2015. 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.
In 2012 the company invested in CDP Reti.
Controversy
There have been several reports of corruption amongst a number of senior officials at the State Grid Corporation of China, with allegations of graft made. A number of these officials have stepped down as result.
Overseas investments
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.
The resulting consortium became the National Grid Corporation of the Philippines (NGCP) which started its operations and maintenance on TransCo's transmission facilities and assets on January 15, 2009 and the franchise will end on December 1, 2058.
In 2010, the company is about to invest US$11 billion in the Sarawak, Malaysia.
In Australia, State Grid owns a 41% stake in ElectraNet, a 19.9% stake in AusNet Services, and 60% stake in Jemena.