State Grid Corporation of China

A very large company moves power. It is called State Grid. This group is the biggest in the world.

It sends power to many homes. It works in a land called China. It also works in many other lands. It sends power to places like Brazil and Italy.

This company uses big lines to move power. These lines carry energy from far away. This helps people get the power they need.

It also works with clean energy. This means using power from the sun or wind. This is good for our world.

Many people work for this big group. It helps keep the lights on for billions of people.

State Grid is a very large company in China. It is the biggest utility company in the world. A utility company is a group that provides things like power. State Grid moves electricity to many people. It serves about 1.1 billion customers.

This company was started in 2002. Before then, the power system was different. The government changed the rules to make the system work better. This helped separate the plants that make power from the lines that move it. Now, State Grid handles 80% of the power grid in China.

State Grid uses special lines to move power. They use ultra high voltage lines. These are lines that carry very strong power over long distances. This helps bring power from far away to big cities. They also work with clean energy. This means using power from the sun, wind, or water.

State Grid works in many lands outside of China. They have offices and work in places like Brazil, Italy, and Australia. They even help manage the power grid in the Philippines. They help keep the lights on for billions of people around the world.

The State Grid Corporation of China, or SGCC, is a massive company that manages electricity. It is the largest utility company in the whole world. This means it is the biggest group for providing things like power to homes and businesses. In 2023, the company had about 1.3 million employees. It also served 1.1 billion customers. The company's revenue was about 546 billion US dollars.

To make the power system work, the company separates two main jobs. One job is making the electricity at power plants. The other job is moving that electricity through wires. This is called transmission. In 2002, China changed its rules to separate these two tasks. This helped create more competition in the power sector. Now, SGCC manages 80% of the power grid in China. The other 20% is managed by the China Southern Power Grid Company.

China began changing its power sector in 1986. This was a three-stage process to fix how electricity worked. In March 2002, the government put a new plan into action. This plan restructured the electric power system. On December 29, 2002, the State Grid Corporation of China was officially founded. It was created when the old State Power Corporation of China was divided. This division created two grid companies and five power generation groups.

SGCC uses special technology called ultra high voltage, or UHV, to move power. These UHV lines carry very strong electricity over very long distances. In January 2009, the company ran its first 1,000-kilovolt alternating current line. This line went between Northern Shanxi and central Hubei. In 2012, they started an 800-kilovolt direct current line. This line sends hydropower from western Sichuan to Shanghai. The company also works with renewable energy, like wind and sun.

This company does not just work in China. It has many investments in other countries. Since 2008, it has worked to grow its business overseas. In 2021, the company had parts of electricity assets in many places. These include Brazil, Italy, Portugal, and Australia. It also works in Greece, Georgia, Oman, and the Philippines. In the Philippines, the company is part of a group that manages the power grid.

The State Grid Corporation of China (SGCC) is a massive state-owned electric utility. It is currently the largest utility company in the world. In terms of total revenue, it is the third largest company globally, following Walmart and Amazon. The company is also the largest government-owned company by revenue. In 2023, SGCC reported having 1.3 million employees. It also serves approximately 1.1 billion customers. Its reported revenue for that year was equivalent to US$546 billion. The company is overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

To understand how the company works, one must understand the separation of power functions. In 2002, China underwent a major reform known as the Plant-Grid Separation. Before this, one entity handled both making electricity and moving it. The reform divided the former State Power Corporation of China into different groups. It created five power generation groups to keep the power plants. It also created five regional subsidiaries for the grid itself. This separation was meant to create competition within the electric power system. SGCC was founded on December 29, 2002, as one of two main grid companies. It now manages 80% of the Chinese grid, while the China Southern Power Grid Company manages the remaining 20%.

SGCC is a pioneer in developing ultra high voltage (UHV) technology. UHV refers to power lines that carry extremely high levels of electricity. This allows power to travel much longer distances more efficiently. In January 2009, the company operated its first 1,000-kilovolt alternating current power line. This line connected Northern Shanxi to central Hubei. In 2012, it began using an 800-kilovolt direct current line. This specific line moves hydropower from western Sichuan all the way to Shanghai. The company also uses alternating current loop lines in the Yangtze River delta. It also operates three longitudinal lines to bring power to Southern China.

Leadership has shaped the company's technical focus over many years. In 2013, Liu Zhenya became the Chairman and Party Secretary. He introduced a strategy called "one special, four large." The "one special" referred to the development of UHV power grids. The "four large" referred to hydropower, coal power, nuclear power, and renewable energy. Liu increased investment in UHV research and development. He even created specialized engineering groups for UHV work. After Liu retired, Shu Yinbiao became Chairman in 2016. Shu continued the "one special, four large" strategy. He also started a "re-electrification" strategy. This plan seeks to replace coal and petroleum power with renewable energy sources.

History shows that the transition to this modern system was not always easy. China began reforming its power sector in 1986 through a three-stage process. During the early 2000s, electrical shortages led the government to use rolling blackouts. These are planned periods where electricity is turned off to manage demand. The State Grid Corporation estimated losses of 1 trillion yuan between 2002 and 2005. To fix these issues, the company began a multi-phase smart-grid project between 2011 and 2015. These smart grids use advanced technology to manage electricity more effectively. Many of these projects involved building new UHV lines across regions like Huainan, Wannan, and Shanghai.

SGCC is also a major player in international energy markets. In 2008, it created the State Grid International Development Company. This branch oversees all of the company's foreign investments. By 2019, the company had ten overseas offices. It has worked with partners in the United States and Germany. As of 2021, SGCC has part ownership or operates assets in many countries. These include Brazil, Italy, Portugal, Australia, Greece, Georgia, Oman, and the Philippines. It has also built or upgraded electricity assets in more than 30 countries across Asia, Africa, and Latin America. The company has exported equipment to more than 70 different countries.

One notable example of international work is in the Philippines. In 2007, a group including SGCC bid for a license to run the Philippine power grid. They won the auction with a bid of $3.95 billion. This bid was higher than those from companies in the United States and Malaysia. This deal led to the creation of the National Grid Corporation of the Philippines (NGCP). This process privatized the management of the grid after 72 years of government operation. The agreement allows NGCP to manage the facilities for a 25-year concession period. This period is set to end on December 1, 2058. This connection shows how SGCC's influence extends far beyond China's borders.