Chinese investment in distribution and transmission hits record high

It has recently been revealed by the State Electricity Regulatory Commission (SERC) in China, that power distribution grid investment of SGCC and China Southern Power Grid and other major regional power supply enterprises maintained an overall gradual growth and has been exceeding power transmission grid investment for consecutive years. Nationwide power supply reliability was up to 99.948% in 2012.

According to SERC data, SGCC’s investment in power distribution grid has kept rising every year, higher than that in power transmission grid; China Southern Power Grid’s investment in power distribution grid has kept falling from 2010 to 2012 but was still far higher than that in power transmission grid after continuous growth from 2006 to 2009; major regional power supply enterprises (Inner Mongolia Electric Power Co., Ltd, Shaanxi Regional Electric Power Group Co., Ltd, Guangxi Water Resources & Electric Power Group Co., Ltd, Sichuan Hydropower Investment & Management Group Co., Ltd and Shanxi International Electricity Group Co. Ltd) saw their investment in power distribution grid surpass that in power transmission grid by a large percentage with continuous rise in 2006 to 2009 before leveling off during 2010 and 2012.

It was worth mentioning that the proportion of investment in power distribution grid and power transmission grid has increased from 1.29:1 in 2011 to 1.62:1 in 2012 for SGCC, and has hit record high of 1.56:1 in 2012 for China Southern Power Grid since the special action on service quality supervision of household electricity in 2012.

In recent years, power supply capability has been steadily improved due to the enhanced investment in power distribution grid construction, the strengthened basic grid structure, the optimized grid operation method and the advanced management skill on equipment operation of all major power supply enterprises.

According to SERC, for 2012, SGCC’s investment in 220kV (and below) grid was 181.6 billion yuan, a year-on-year growth of 9.1%; China Southern Power Grid’s investment in 220kV (and below) grid was 37.64 billion yuan, nearly identical to that of 2011, covering almost all the people in its business area as a result of enhanced investment in solving the problem of people not having electricity; the five major regional power supply enterprises invested 8.21 billion yuan in grid of 220kV (and below) in total, up by 7.2% year-on-year, namely Inner Mongolia Electric Power Co., Ltd, Shaanxi Regional Electric Power Group Co., Ltd, Guangxi Water Resources & Electric Power Group Co., Ltd, Sichuan Hydropower Investment & Management Group Co., Ltd and Shanxi International Electricity Group Co. Ltd.

With more investment in grid construction, China’s urban and rural power supply capability of distribution network was significantly improved. The problem of people having no access to electricity was quickly solved and nationwide power supply reliability reached 99.948% in 2012

Pimagazine Asia Admin

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