State Grid Corporation


State Grid Corporation is the largest power grid company in China responsible for the construction and operation of power grid infrastructure predominantly in Northern China and ranked seventh in the Fortune Global 500 list in 2013. It is the largest electric power transmission and distribution company in China and in the world.

State Grid has expanded into overseas markets in line with China’s ‘going out policy’, focusing on power distribution and grid operation to raise the company’s strategic international presence and secure profits. State Grid believes that doing business overseas could help them experiment with their business strategy, management, and trial technology to improve their Chinese operations. Over the next five years (2011-2015), State Grid has prioritized its expanding presence in Africa and South America. From 2007-2014, the company has spent more than $7 billion overseas in acquisitions          

Alongside Sinohydro, State Grid was involved in the development of the Bakun Hydroelectric Project in Sarawak, Malaysia. In January 2010, the Malaysian Government’s development company announced that it had signed an agreement with State Grid to pursue renewable energy projects in Sarawak, including at least 4 hydropower projects. The deal was reported to be worth up to US$11 billion, although there has been little progress on the ground to date.

In Ethiopia, China Electric Power Equipment and Technology Co, a company of State Grid, signed a $1 billion dollar loan agreement for construction of 700km of transmission lines linking the Grand Ethiopian Renaissance Dam (GERD) to the national grid. Upon completion in 2017, the dam will be the largest in Africa, with a capacity of 6,000 MW.

In Mozambique, State Grid is the main developer of the country’s development project, Cesul, valued at US $2 billion. The project consists of a double transmission line to transfer power generated from the country’s Mphanda Nkuwa and Cahora Bassa dams to the national grid.

State Grid currently holds a 25-year contract to operate the Philippines power grid, which generated $160 million of revenue in 2010. State Grid expects to recover all its initial investment outlays within four years.

In recent years, State Grid has particularly focused its international expansion in Brazil. In December 2010, State Grid bought seven power transmission companies in Brazil, a deal valued at about $1 billion and expected to generate $110 million in annual earnings or about a 12 per cent annual return on equity, far higher than the 4 per cent that the company earns in the highly regulated Chinese market.

In 2012, the company acquired an additional seven transmission assets in the country, costing $942 million. In December of 2012, State Grid partnered with local companies COPEL and Furnas Centrais Eléctricas to build a 967-kilometer transmission line. With this project, Brazil operated a total of 9,931 kilometers of transmission line at the time. In March 2012, State Grid and COPEL again won licenses to build 1,600 kilometers of transmission lines and four substations in the Amazon’s Tele Pires river basin.

In February of 2014, SGCC was awarded a 30-year concession to build and operate a 2000-kilometer power line intended to carry power from Brazil’s Belo Monte Dam to the southeast.

State Grid’s long-term strategy is to expand operations from transmission to encompass distribution and generation management functions in the country as well, including investments in R&D. By 2015, China is projected to total $5 billion in Brazilian investment.

Within China, State Grid has prioritized developing and improving China’s transmission system and creating a national grid. In 2011, the company announced plans to invest $250 billion in electric power infrastructure upgrades for five years, $45 billion of which to directly invest in smart grid technologies. As of 2014, Smart Grid operates seven ultra-high-voltage (UHV) transmission lines within China, and is working on the development of an eighth, making China the leader in UHV transmission technology.

More information: 

General manager: Liu Zhenya
Company spokesperson: Yin Jijun, Director
Address: No. 86, West Chang'an Street, Xicheng District, Beijing, 100031

International Liaison Department
Phone: + 86 (10) 6659 8607