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State Grid Corporation of China
Trade name
  • SGCC
  • State Grid
Native name
国家电网有限公司
State-owned enterprise
Industry Electric utility
Founded 2002; 23 years ago (2002)
Headquarters
Xicheng District, Beijing
,
China
Area served
China
Philippines (through National Grid Corporation of the Philippines)
Australia
Brazil
Italy
Portugal
Greece
Chile
Key people
Xin Bao'an (Chairman)

Huang Dean (Chief Compliance Officer) Zhang Zhigang (President) Pan Jingdong (Executive Vice President)

Zhu Min (Executive Vice President)
Products Electrical grid, Electric power transmission
Services Nuclear power transmission
Revenue Increase US$ 545.95 billion (2023)
Operating income
Increase US$ 12.127 billion (2023)
Increase US$ 9.204 billion (2023)
Total assets US$ 781.126 billion (2023)
Total equity US$ 344.176 billion (2023)
Number of employees
1.361 million (2023)
State Grid Corporation of China
Chinese 国家电网有限公司
Literal meaning National Power Grid Company Limited
Transcriptions
Standard Mandarin
Hanyu Pinyin Guójiā Diànwǎng Gōngsī

The State Grid Corporation of China (SGCC), often called the State Grid, is a huge company in China. It is owned by the Chinese government. This company is the biggest electric utility in the world. An electric utility is a company that provides electricity to homes and businesses.

As of early 2024, State Grid was the third largest company in the world by how much money it made. Only Walmart and Amazon were bigger. It is also the largest government-owned company by revenue. In 2023, it had over 1.3 million employees. It served 1.1 billion customers and made about US$546 billion. The Chinese government's agency, State-owned Assets Supervision and Administration Commission of the State Council (SASAC), oversees it.

In 2002, China changed how its electricity system worked. The old State Electric Power Corporation was split up. Five new power generation groups were created. State Grid Corporation of China was formed to manage the power grid.

History of State Grid

How State Grid Started

State Grid is one of the main companies owned by the Chinese government. These companies are called "central state-owned enterprises." State Grid is also a leader in developing clean energy technology. This means they work on ways to get electricity from sources that don't pollute.

China started to change its power system in 1986. The final big change happened in March 2002. The government wanted to create more competition in the electricity market. They also wanted to separate companies that make power from those that deliver it.

The State Grid Corporation of China was officially started on December 29, 2002. The old State Power Corporation of China was divided into two grid companies. It also created five power generation groups and four other business companies. The two new grid companies were State Grid Corporation of China and a smaller one called China Southern Power Grid Company. State Grid manages about 80% of China's power grid. China Southern Power Grid handles the other 20%. When it first started, State Grid could generate 6.47 gigawatts of power. A gigawatt is a very large unit of power, equal to one billion watts.

Building the Power Network

In the early 2000s, China faced electricity shortages. This led to planned power outages, called "rolling blackouts." State Grid estimated that these shortages caused huge losses between 2002 and 2005.

To fix this, State Grid built new power lines. In January 2009, they opened the first 1,000-kilovolt alternating current power line. This line connected Northern Shanxi to central Hubei. In 2012, they started using an 800-kilovolt direct current line. This line sends hydropower from western Sichuan to Shanghai. Hydropower uses the force of moving water to create electricity.

State Grid also built an alternating current loop line in the Yangtze River delta. They added three long alternating current lines. These lines bring power from northern China to the southern regions.

Since 2011, State Grid has been moving control of power assets. They transferred them from smaller regional companies to larger provincial network companies.

Smart Grid and New Technologies

State Grid worked on a big "smart-grid" project for China's electrical system. A smart grid uses digital technology to manage electricity more efficiently. China's smart grid plans use many "ultra high voltage" (UHV) lines. UHV lines can carry a lot of electricity over long distances.

Several UHV construction projects began in 2012. These projects aimed to bring UHV power lines across different regions. By 2015, the company planned to have many more UHV lines.

In 2013, State Grid created a Board of Directors. Liu Zhenya became its Chairman. He focused on developing UHV power grids. He also supported using hydropower, coal power, nuclear power, and renewable energy. Liu increased State Grid's investment in UHV research.

In 2015, SGCC suggested a big idea called the Global Energy Interconnection. This plan aims to create a worldwide smart grid. It would use UHV networks to connect over 80 countries. The goal is to share electricity more easily around the world.

After Liu Zhenya retired in 2016, Shu Yinbiao became the Chairman. He continued the focus on UHV and different power sources. He also started a new plan called "re-electrification." This plan tries to replace power from coal and oil with electricity from renewable sources.

Today, State Grid is the world's largest energy utility company. It is the third biggest company in the world by revenue. It manages almost all of China's energy transmission network.

State Grid Around the World

Investing in Other Countries

In 2008, State Grid created a special company. It was called State Grid International Development Company. This company was made to handle State Grid's investments in other countries.

By 2019, State Grid had offices in ten different countries. They also had agreements with partners in the United States and Germany. They worked with international groups on projects like new smart grid technology.

As of 2021, State Grid owned parts of, or operated, electricity systems in many countries. These included Brazil, Italy, Portugal, Australia, Greece, Georgia, Oman, and the Philippines. They also built or improved electricity systems in over 30 countries in Asia, Africa, and Latin America. State Grid has also sold equipment to more than 70 countries.

Philippines Power Grid

In 2007, State Grid was part of a group that won a bid in the Philippines. This bid was to run the Philippines' power grid for 25 years. The group, called the National Grid Corporation of the Philippines (NGCP), won with a high offer of $3.95 billion. This started the process of letting private companies manage the power grid.

In 2008, the agreement between NGCP and the Philippine government was signed. The Philippine Congress approved NGCP's right to manage the power grid. The President signed the law in December 2008.

On January 15, 2009, NGCP officially took over the power grid. This meant they would operate, maintain, and expand it for 25 years. This agreement can be renewed for another 25 years, making it a total of 50 years. This change meant the power grid was now managed by a private company. Before this, it had been managed by the Philippine government for over 72 years. The current agreement will end in December 2058.

Other Countries with State Grid Investments

  • In Portugal, State Grid owns 25% of a company called REN. This happened during the company's privatization between 2012 and 2014.
  • In Australia, State Grid owns parts of several energy companies. These include 41% of ElectraNet, 19.9% of AusNet Services, and 60% of Jemena.
  • In Brazil, State Grid helps develop and operate hydropower facilities. In 2017, State Grid took control of a company called CPFL Energia S.A. for about US$3.4 billion. State Grid also built a very long UHV power line in Brazil. This line is 2000 km long. It delivers hydropower to big cities like Rio de Janeiro and São Paulo.
  • In Chile, State Grid bought Chilquinta Energía in 2020. This company is the third-largest electricity distributor in Chile. They also bought Tecnored SA, which provides construction services. In November 2020, State Grid also agreed to buy Compañia General de Electricidad (CGE). CGE is the largest electricity distributor in Chile.
  • In Italy, State Grid owns 35% of CDP Reti. This company owns a third of Italy's power and gas grid operators, Terna and Snam.

Subsidiaries

  • State Grid Yingda Group
    • Yingda International Trust (89.76%)

See also

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