CHAPTER-4. on operation performances for eleven consecutive years.


         China’s electric power industry is the world’s largest electricity
producer. In china, most of the electricity produced from coal. According to
2014, 73% of domestic electricity production registered from coal energy. Since
2013, Coal-fired electricity production of renewable energy was decreased.

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         China has the world’s third biggest coal
stockpile and massive hydroelectric resources available. However,  a geographical mismatch between the location
of the coal fields in the north-east (Heilongjiang, Jilin, and Liaoning) and north (Shanxi, Shaanxi, and Henan), hydropower in the south-west (Sichuan, Yunnan, and Tibet), and the fast-growing industrial Burden
centre of the east (Shanghai-Zhejiang) and south (Guangdong, Fujian).



1.      State Grid

2.      China
Southern power grid

State grid and china southern power grid are linked by HVDC back to back


              4.1.1. STATE GRID CORPORATION

                       SGCC became installed on
December 29, company Profile2002,
an agency permitted by using the kingdom Council to perform kingdom-authorized investment and a pilot kingdom retaining company. it has been rated
as an A-elegance organization via SASAC assessment on operation performances for eleven consecutive years. As the most
important application within the global, SGCC has a strong rating of the second on Fortune global 500.

SGCC constructs and operates energy grids as its centre business.
As a terrific-big nation-owned employer vital to country
wide-electricity safety and economic lifeline, with a task to provide more secure, purifier, and greater cost-efficient and sustainable strength supply.
SGCC operates as a set with RMB
536.3 billion registered capital and
1.72 million personnel.
SGCC offers electricity to over 1.1 billion human beings in 26 provinces, self-sustaining areas and
municipalities, overlaying 88%
of the country wide territory.
The business enterprise also owns and operates foreign places belongings within
the Philippines, Brazil, Portugal,
Australia and Italy, and so forth.
with excellent performance.




                    China Southern Power Grid Co., Ltd. (hereinafter referred
to as CSG) was installed on
December twenty ninth, 2002 because
of one of the power region deregulatory reform in China. As one
in every of state-owned power grid businesses in China, CSG invests, constructs and operates
the transmission and distribution networks in Guangdong, Guangxi, Yunnan,
Guizhou and Hainan provinces and regions. Its predominant duties are: to perform and manipulate electricity gird in
keeping with the law, make sure dependable energy deliver, plan the improvement of regional electricity gird,
foster nearby electricity market, control strength dispatching
and buying and selling middle, and carry out electricity dispatching in
line with electricity gird operation legal guidelines and the marketplace rules.

                    As a kingdom-owned organisation, SCG takes it as its venture to undertake the duty of defensive public interests and to take the cause build a
harmonious society. The corporation tries to optimize the regional allocation of assets, coordinate power technology, transmission and distribution, and provide clients with safe and dependable energy,
and to provide certified-offerings and create social wealth in addition
to environmental blessings for the society.



                  China started out a hobby to exchange the country’s power segment in a 3-set
up process in 1986. in the 0.33 and final degree in March 2002 the country Council of the humans Republic of China placed into effect an arrangement to
rebuild the nation’s electric
powered energy framework with a specific quit goal to make contention and separate age and transmission capacities.
The kingdom Grid business
enterprise of China turned into hooked up on
December 29, 2002, whilst the
rebuilding separated the preceding nation energy enterprise of China into two network groups, 5 age
gatherings and four accessorial enterprise organizations. the 2 matrix businesses made have been the State Grid company of
China and a littler China Southern Power Grid agency. At
its creation, the corporation had an age limit of 6.47 gigawatts. 

In 2003 and dynamically so thru the mid-2000s, electrical deficiencies made the management basis engineered strength
outages. The country Grid enterprise assessed there were 1 trillion yuan in misfortunes from 2002 to
2005. The state Grid business
enterprise of China ran the initial 1,000-kilovolt replacing modern-day electric cable among Northern Shanxi and focus Hubei
in January 2009. In 2012 it commenced operation
of a 800-kilovolt coordinate modern-day line that sends hydropower from western Sichuan to Shanghai.
It additionally has an exchanging ebb and glide circle line in the Yangtze
waterway delta, and three longitudinal
substituting momentum traces that bring electricity to
Southern China from the Northern locale. 

The country Grid organization became engaged with a multi-level incredible matrix assignment for China’s electric lattice made preparations for 2011-2015. China’s savvy lattice endeavour’s aren’t pretty similar
to those in the US in that its
designs vigorously utilize extremely excessive voltage
(UHV) lines. some UHV improvement ventures started in 2012 to deliver UHV electrical cables crosswise over Huainan, Wannan, and
Shanghai and another from
Xilingol League to Nanjing. with the aid of2015, the agency intends
to have 3 greater flat UHV traces via West inner Mongolia to Weifang, from imperative Shanxi-Xuzhou to Yaan-southern Anhui and 11 unique lines by way of 2015. 

In 2012 the organisation positioned assets into CDP Reti.













           Nowadays, although China has gained
the reputation of becoming one of the few countries that are able to utilize
the ultra-high-voltage (UHV) power grids by applying the most advanced
technologies in the world. There still remains some controversies and
challenges when it comes to the UHV power grid. Among them, the reliability and
security issue are the most crucial and significant one. (The Development
Strategy of The State Grid Corporation of China 2017, p16).

           Currently, the power grid is getting
more and more crowded and intensive in China due to the increasing amount of
UHV transmission line. It will increase the potential risk of the blackout
caused by local failures even if just one single accident occurs on one line.


As stated in (National Science Review
2014, p369), in spite of the fact that the majority of the provincial power
grids are already been covered by the national defense system in China. It is
as yet inadequate to avoid some extreme natural disasters, including lightning
as well as ice covering. Besides, there are some other issues and shortages in
numerous aspect that should be taken into our consideration as well, such as
the incorporation of the information and data from various systems including
the ecological and geographic systems, the ability of viable and efficient
reactions to monstrous disturbances, as well as the adjustment and prevention
capacity in managing the crisis control together with the assignment


Xue comments that (National Science
Review, 2014, p370): therefore, it is necessary to try the best to prevent all
the accidents even with lower probability in order to shield the power grid
from serious harms. So, one of the future trends of the power grid would be the
extension from the current approach of gathering information which is only
focused on the power system itself to the information system from the natural
environment as well. Only by doing so, the range of the defense systems will be
able to stretch out to wider borders.


Moreover, the decision-making
strategies for the design of the power grid defense system will be expected to
shift from the current ordinary operation mode to the worst situation, which
will also contribute to the stability and reliability of the power transmission
line by establishing a new active defense approaches.


      6.2. MARKET and POLICY ISSUE

the other hand, as a fast-growing country, China is not capable of affording
the economic result of deficient or oversupply of the electrical power due to
the imbalance of the distribution of the power grid. A perfect example could be
found by the official data from the coastal city of Guangzhou, which indicated
that there was a significant power shortage of approximately 0.16 million
kilowatts in the summer session in 2015 due to the matching problem between the
increasing demand of the electricity and the outdated power grid system, which
has cost nearly millions of dollars as a result from the loss in GDP directly
in this manufacturing hub of China (China Southern
Power Grid, 2015, PA04).


order to battle this crisis, Guangzhou and even the whole of China need to
accelerate constructing the new power grid and power plants to meet the
constantly growing demand for the electricity. However, unlike some other
western countries, the power grid infrastructure arrangement, maintenance, as
well as the electricity price in China are mainly controlled by the state-owned
companies (the State Grid Corporation of China and China Southern Power Grid
Company), meaning that the non-market force has the most significant and dominant
influence on the decision-making of the power grid system in China. Therefore,
the market and policy issue should also be taken seriously when it comes to the
rebuilding of the new power grid. (The Future Electricity Grid, 2016, p16)


speaking, in an ideal power grid market, the central planning from the
non-market force for the distribution of transmission line and even the amount
of power generation should be zero in order to keep the market competitive. The
signals of the market price are supposed to be sufficient enough to prompt the
power grid by inducing the investment. Guarantee on the return of investment is
expected to be rare and the investors have the completed right to determine how
much they are willing to invest by evaluating the potential benefit and risks.


though it is highly unlikely to develop this ideal power grid market in the
future of China due to the political policy, it has remained the faith that it
is feasible to improve the efficiency of state-owned companies by introducing
the private management approach. It is also practical for the Chinese
government to ensure that the correct signals are being sent based on the
market regulation so that at least the level of the power grid investment from
the state is appropriate, which can contribute greatly to avoid the presence of
the huge imparity between excess capacity as well as insufficient capacity of
the power grid systems in China. (China’s Future in Electrical Energy, 2005,
p37 )