Source: State Grid has invested more than $12.4 billion in Brazil
Text丨Dream Embassy
Editor丨Dream Embassy
Preface
As we all know, there are many large central and state-owned enterprises in the mainland, although they operate in different categories, they all have one thing in common, that is, the company name will be preceded by the word "China".
But when we mention the power grid, it is the "State Grid", not the "China Power Grid". In fact, the "China Power Grid" is not only China's, but also many countries rely on it.
So how powerful is the national power grid, and why do foreign countries rely on the mainland's power grid?
Why is the State Grid prefix not China?
The name China Power Grid may sound like it is only related to China's power supply, but in reality, its influence extends far beyond national borders.
So, the reason why we don't call it "China Power Grid" is because it involves cooperation with many countries and consideration of China's influence.
The State Grid not only serves China, but also has established cooperative relations with 11 other countries and regions, and this cross-border cooperation is not only reflected in the construction of power grids, but also in the participation and decision-making of power construction in these countries.
Chinese companies have improved the efficiency and quality of local power supply by providing technology and equipment that enable the power grids in these regions to operate according to Chinese standards.
It all started with the global economic crisis of 2008, in which many countries had to sell off state-owned assets in order to ease fiscal pressures.
It is in this context that State Grid seized the opportunity and began its journey of internationalization, from 2010 to 2016, State Grid successively acquired shares in transmission companies in Brazil, Portugal, Italy and other countries, making it one of the largest utilities in the world.
It is worth noting that the State Grid has always adhered to a balancing principle in international cooperation, although it has remained stable in the economic crisis and has the ability to fully control the power grids of the countries concerned.
But it has opted for a more modest approach to cooperation, building and managing the grid with local countries. This approach not only reflects China's willingness to help others, but also avoids the misinterpretation of malicious control over the lifeblood of other countries' development.
The reason why the State Grid is not called "China Power Grid" is that its business scope has gone beyond a single country, and it not only plays a key role in China's power supply, but also plays an important role internationally.
In the future, with the continuous development of China's power industry and the continuous progress of State Grid technology, we have reason to believe that the State Grid will become a real "world power grid".
The development of China's electric power
Since 1882, when the first 12-kilowatt unit on the Bund in Shanghai generated electricity and lit up 15 arc lamps, China's electric power industry has opened a magnificent chapter.
This spark ignited the raging flame of electric power civilization on the land of China, and ushered in rapid development after the founding of New China.
Today, China not only ranks first in the world in terms of installed power generation capacity and power generation, but also shows strong international competitiveness in power technology and equipment manufacturing.
From the initial spark to the current prairie fire, China's power industry has undergone a transformation from scratch, from small to large, especially after the founding of the People's Republic of China, the power industry has entered the fast lane and achieved leapfrog development.
By the end of 2018, China's installed power generation capacity reached 189967 kilowatts, ranking first in the world, and in the same year, the country's power generation capacity reached 7,111.8 billion kilowatt hours, also ranking first in the world.
This figure not only exceeds the United States by more than 50%, almost twice that of the European Union, and is equivalent to the combined three countries of the United States, Japan and Russia, but also the advantages of China's power technology should not be underestimated.
As of 2018, the highest voltage level of China's power grid has reached 1100 kV, once again setting a new world record.
In modern life, electricity has become an indispensable part, since Edison invented the practical electric light, electricity has gradually penetrated into all corners of our daily life, from home lighting to industrial production, from medical communication to leisure and entertainment, electricity is everywhere and omnipotent.
It has greatly enriched our way of life, improved work efficiency, and promoted a leap in social productivity, in order to maintain and manage such a huge power system, the national grid came into being.
Its name not only represents the control of electricity in China, but also reflects the determination and strength of China's power industry to integrate with international standards, and in the context of global energy transition, China's power industry is moving towards a greener and smarter direction.
Is State Grid a central or state-owned enterprise?
State Grid is a giant in China's energy sector, which is not only the core pillar of China's power supply, but also the perfect combination of central enterprises and state-owned enterprises.
As an enterprise under the direct jurisdiction of the National Energy Administration, the ownership of the State Grid is owned by the state, which makes it fully in line with the definition of a central enterprise.
However, in terms of business model, the State Grid is closer to the characteristics of state-owned enterprises, and its core task is to ensure the stability of power supply nationwide and ensure the safe operation of the power grid.
State Grid's profit model is different from that of other state-owned enterprises, and while it also makes profits by investing in and managing domestic and foreign power businesses, its main source of revenue is electricity transmission and distribution fees.
This part of the fee is a service fee charged according to national regulations, mainly used to support the daily operation and construction of the power grid, therefore, the State Grid pays more attention to providing public services, rather than simply pursuing profits.
In addition to commercial activities, the State Grid also shoulders the responsibility of national energy security and sustainable development, by optimizing the allocation of power resources and promoting the development of clean energy, the State Grid not only helps the country achieve energy transition, but also strives to reduce energy consumption and pollution emissions, which is in line with the country's development strategy and shows the sense of social responsibility of central enterprises.
State Grid's status as a state-owned enterprise has given it many privileges and support, such as policy inclination, smooth financing channels and strong resource integration capabilities.
As a state-owned enterprise, the State Grid needs to pay more attention to the quality of public services, to ensure the safety and stability of power supply, the State Grid in the performance of the responsibilities of central enterprises at the same time, has not forgotten the mission of state-owned enterprises, is committed to promoting the optimization of the energy structure and the development of clean energy, for the progress of the country and society has made a contribution.
State Grid is an important enterprise that integrates the characteristics of central enterprises and state-owned enterprises, whether from the ownership, business model, profit model, or from the perspective of social responsibility, the State Grid is guided by public interests, and plays a vital role in ensuring power supply and national energy security.
When discussing the State Grid, we should not just look at it as a central or state-owned enterprise, but should focus more on its positive impact in securing the country's electricity supply and promoting the energy transition.
epilogue
As a power giant in China and even in the world, the influence and contribution of the State Grid can not be underestimated, it has not only established a wide-ranging, stable and efficient power network in China, but also demonstrated strong technical strength and service capabilities in the world.
However, for such a large enterprise, how to maintain a leading position while dealing with various challenges, such as uneven regional development and the application of new technologies, is still a question worth pondering. In the future, whether the State Grid can continue to lead the development of the industry and achieve its own sustainable development is undoubtedly a topic worthy of our continuous attention and discussion.