State Grid Corporation of China
The State Grid Corporation of China (SGCC), commonly known as the State Grid, is a Chinese state-owned electric utility corporation. It is the largest utility company in the world, and as of 2022, the world's third largest company overall by revenue, behind Walmart and Amazon.[5] In 2022 it was reported as having 871,145 employees, 1.1 billion customers and revenue equivalent to US$460 billion.
State Grid headquarters in Beijing's Xicheng District | |
| |
Native name | 国家电网公司 |
| Type | State-owned enterprise |
| Industry | Electric utility |
| Founded | 2002 |
| Headquarters | , China |
Area served | China Philippines (through National Grid Corporation of the Philippines) Australia Brazil Italy Portugal Greece Chile |
Key people | Xin Baoan (Chairman) Huang Dean (Chief Compliance Officer) Zhang Zhigang (President) Pan Jingdong (Executive Vice President) Zhu Min (Executive Vice President) |
| Products | Electrical grid, Electric power transmission |
| Services | Nuclear power transmission |
| Revenue | US$ 363.125 billion (2017)[1] |
| 78,697,281,872 renminbi (2018) | |
| US$ 10.201 billion (2015)[2] | |
| Total assets | US$ 585.278 billion (2017)[2] |
| Total equity | US$ 207.345 billion (2015)[2] |
Number of employees | 1.566 million (2019) [3][4] |
| Parent | SASAC |
| Website | www |
| State Grid Corporation of China | |||||||
|---|---|---|---|---|---|---|---|
| Simplified Chinese | 国家电网公司 | ||||||
| Traditional Chinese | 國家電網公司 | ||||||
| Literal meaning | National Power Grid Company | ||||||
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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 five power generation groups that retained the power plants and five regional subsidiaries belonging to the State Grid Corporation of China in Beijing.[6]
History
China began an initiative to reform the country's power sector in a three-stage process in 1986.[7] 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.[8] 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.[9] The two grid companies created were the State Grid Corporation of China and a smaller China Southern Power Grid Company.[10] At its creation, the company had a generation capacity of 6.47 gigawatts.[8]
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.[8] 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.[11]
The State Grid Corporation was involved in a multi-phase smart-grid project for China's electrical grid planned for 2011–2015.[12] China's smart grid efforts are different from those in the United States 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 planned 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.[11]
In 2012 the company invested in CDP Reti.
From 2010 to 2020 the companies investments in grid expansion rose from 291.12 BioYuan to 460.5 BioYuan.[13]
Controversy
On October 29, 2014, The Central Commission for Discipline Inspection declared that the general manager of State Grid Shanghai Municipal Electric Power, Feng Jun, was detained in an anti-graft operation overseen by the commission.[14] In 2017, his assets (worth 53 million yuan) were seized, and he was sentenced to life in prison.[15]
Overseas investments
Philippines
On December 12, 2007, two consortia bid for a 25-year license to run the Philippines power grid—privatization of the management of the Philippine government-owned 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 the Filipino San Miguel Corporation (bid of $3.905 billion), Dutch firm TPG Aurora BV, and Malaysia's TNB Prai Sdn Bhd.[16][17][18] This started the transition period for the turnover of operations and maintenance of the Philippine power grid from TransCo to the resulting consortium (National Grid Corporation of the Philippines (NGCP)).
On February 28, 2008, TransCo's concession agreement with NGCP was executed and became effective. The agreement between NGCP and TransCo was signed by TransCo president Arthur Aguilar, PSALM president Jose Ibazeta, and NGCP directors Walter Brown, Elmer Pedregosa and Du Zhigang.[19][20] In November of that same year, Congress approved bicameral resolution granting franchise to NGCP to manage and operate its transmission facilities nationwide. President Gloria Macapagal Arroyo signed Republic Act 9511 which granted NGCP to operate and manage the country's power grid in December 2008.
On January 15, 2009, TransCo turned over the operations, maintenance, and management of the transmission system to NGCP which marked the start of the 25-year concession period and franchise and renewable for another 25 years with a total of 50 years, and ended the transition period for the privatization of the operations and maintenance of the power grid. The franchise and concession period will end on December 1, 2058.[21][22][23]
Other countries
In Portugal, State Grid has a 25% stake in REN since the second stage of its privatization (in 2012–2014).[24]
In Australia, State Grid owns a 41% stake in ElectraNet, a 19.9% stake in AusNet Services, and 60% stake in Jemena.[25]
In Brazil, State Grid acquired the control of CPFL Energia S.A. for the equivalent of US$3.4 billion in 2017.[26] State Grid built the 2000 km Ultra High Voltage power line delivering hydropower to the megacities Rio de Janeiro and Sao Paolo.[27]
In Chile, State Grid acquired Chilquinta Energía, the third-largest distributor of electricity in Chile, and Tecnored SA, which provides construction services to Chilquinta, from U.S. power company Sempra Energy. The deal was closed on June 24, 2020.[28] On 13 November 2020, it was announced that State Grid had reached an agreement to acquire Compañia General de Electricidad (CGE), the largest distribution of electricity in this country.[29]
Subsidiaries
- State Grid Yingda Group
- Yingda International Trust (89.76%)
See also
References
- ^ "State Grid's 2017 financial report". Statista. from the original on 18 December 2018. Retrieved 4 June 2018.
- ^ a b c "State Grid". Fortune Global 500. from the original on 2 May 2017. Retrieved 29 April 2017.
- ^ https://www.owler.com/company/sgcc[bare URL]
- ^ "State Grid | 2021 Global 500".
- ^ "Fortune 500".
- ^ JamesPaton14, James Paton (31 March 2016). "China Builds an Empire of Electricity With Australia as Target". Bloomberg.com. from the original on 2016-08-12. Retrieved 2016-08-11.
- ^ Gee, Robert; Songbin Zhu; Xiaolin Li, China's power sector: Global economic and environmental implications
- ^ a b c The Xinfeng Power Plant Incident and Challenges for China's Electric Power Industry (PDF), IEEJ, February 2007, (PDF) from the original on 3 March 2016, retrieved 10 October 2012
- ^ Chen Wenying (2006). China's Energy Outlook. Guida Editori. ISBN 978-981-256-748-2. from the original on 2 January 2014. Retrieved 10 October 2012.
- ^ "China's power sector revolution stalled", Probe International, October 14, 2010, from the original on November 28, 2012, retrieved October 10, 2012
- ^ a b China grid eyes building 2 new UHV power lines this yr, Reuters, August 13, 2010, from the original on June 25, 2013, retrieved 2012-10-10
- ^ Bojanczyk, Kamil (October 9, 2012), Reprint: China and the World's Greatest Smart Grid Opportunity, GreenTech Media, from the original on September 27, 2012, retrieved 2012-10-10
- ^ "China: State Grid Corporation grid expansion investment 2020". Statista. Retrieved 2023-02-15.
- ^ "State Grid Shanghai chief Feng Jun detained in corruption sweep". 30 October 2014. from the original on 2015-04-03. Retrieved 2015-03-10.
- ^ "Electricity executive who took millions in bribes jailed for life". 29 March 2017. from the original on 2018-07-24. Retrieved 2018-07-24.
- ^ Manila Times, RP-China group wins $3.95-B TransCo bid 2007-12-13 at the Wayback Machine
- ^ "Two groups vie for multi-billion dlr Manila power deal". Reuters. 11 December 2007. from the original on 7 October 2019. Retrieved 7 October 2019.
- ^ Abs-Cbn Interactive, Monte Oro consortium wins TransCo bidding
- ^ "NGCP wields absolute power in TransCo deal". Daily Tribune. Retrieved August 6, 2021.
- ^ Mario J. Mallari (October 17, 2019). "NGCP in yellow-dog contract?". Daily Tribune. Retrieved September 8, 2022.
- ^ TransCo Corporate Profile
- ^ . Archived from the original on 2016-12-02. Retrieved 2016-12-06.
- ^
- ^ "Shareholder Structure". from the original on 2018-05-15. Retrieved 2018-05-15.
- ^ Maiden, Malcolm (17 May 2013). "China's State Grid powers up in Australia". from the original on 2016-09-13. Retrieved 2016-08-11.
- ^ "State Grid buys $3.4 BLN in CPFL from minority shareholders". Reuters. 30 November 2017. from the original on 2019-01-19. Retrieved 2019-01-17.
- ^ xinhua news (2021-11-18). "Interview with Xin Baoan, Chairman of State Gripd of China ltd". xyzchem.com. Retrieved 2023-02-15.
- ^ "Sempra Energy sells Chilean businesses to SGID for $2.23bn". Power Technology | Energy News and Market Analysis. 2020-06-25. Retrieved 2020-06-26.
- ^ "Naturgy sells its electricity grids in Chile to China State Grid". 2020-11-16. Retrieved 2020-11-16.
External links
- Official website (Official website (in Chinese))