State Grid






It wasn’t an electric year for State Grid, China’s state-owned power company, as sales dipped just under 1% in 2019. Beijing appointed Mao Weiming as State Grid’s chairman at the start of 2020, marking the first time the massive utility has been led by a chairman with no prior experience in the industry. Mao’s predecessor reportedly had objected to a government plan last year that guaranteed the power company would purchase clean energy from operators of renewable power plants. The program is tied to China’s effort to green its electricity supply, but it could put a squeeze on State Grid’s profit margins. Mao is thought to be more amenable to the plan. Meanwhile, as China battles its way out of the economic slump caused by the pandemic, coal-fired power generation remains king for State Grid—at least for now.

Company information

As of 8/10/20
Xin Baoan
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Government owned 50% or more.

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The State Grid Corporation of China (SGCC), commonly known as the State Grid, is a Chinese state-owned electric utility corporation.[2] It is the largest utility company in the world, and as of 2020, the world’s fourth largest company overall by revenue.[5] In 2016/17 it was reported as having 927,839 employees, 1.1 billion customers and revenue equivalent to US$363.125 billion.[2][6]

After the electricity “Plant-Grid Separation” reform in early 2002, the assets of State Electric Power Corporation (国家电力公司) were divided into the five “power generation groups” that retained the power plants and five regional subsidiaries belonging to the State Grid Corporation of China in Beijing.[6]

State Grid Corporation of China
  • SGCC
  • State Grid
Native name
Type State-owned enterprise
Industry Electric utility
Founded 2002; 19 years ago


Area served
Philippines (through National Grid Corporation of the Philippines)
Key people
Shu Yinbiao (Chairman)
Products Electrical gridElectric power transmission
Services Nuclear power transmission
Revenue Increase US$ 363.125 billion (2017)[1]
78,697,281,872 renminbi (2018)
Increase US$ 10.201 billion (2015)[2]
Total assets US$ 585.278 billion (2017)[2]
Total equity US$ 207.345 billion (2015)[2]
Number of employees
1.566 million (2019) [3] [4]
Parent SASAC
Chinese name
Simplified Chinese 国家电网公司
Traditional Chinese 國家電網公司

China began an initiative to reform the country’s power sector in a three-stage process in 1986.[7] In the third and final stage in March 2002 the State Council of the People’s Republic of China put into effect a plan to restructure the country’s electric power system in order to create competition and separate generation and transmission functions.[8] The State Grid Corporation of China was founded on December 29, 2002, when the restructuring divided the former State Power Corporation of China into two grid companies, five generation groups and four accessorial business companies.[9] The two grid companies created were the State Grid Corporation of China and a smaller China Southern Power Grid Company.[10] At its creation, the company had a generation capacity of 6.47 gigawatts.[8]

In 2003 and progressively so through the early 2000s, electrical shortages caused the government to institute rolling blackouts. The State Grid Corporation estimated there were 1 trillion yuan in losses from 2002 to 2005.[8] The State Grid Corporation of China ran the first 1,000-kilovolt alternating current power line between Northern Shanxi and center Hubei in January 2009. In 2012 it began operation of an 800-kilovolt direct current line that sends hydropower from western Sichuan to Shanghai. It also has an alternating current loop line in the Yangtze River delta, and three longitudinal alternating current lines that bring power to Southern China from the Northern region.[11]

The State Grid Corporation was involved in a multi-phase smart-grid project for China’s electrical grid planned for 2011–2015.[12] China’s smart grid efforts are different from those in the United States in that its plans heavily use ultra high voltage (UHV) lines. Several UHV construction projects began in 2012 to bring UHV power lines across HuainanWannan, and Shanghai and another from Xilingol League to Nanjing. By 2015, the company planned to have three more horizontal UHV lines through West Inner Mongolia to Weifang, from Central ShanxiXuzhou to Yaan–southern Anhui and 11 other lines by 2015.[11]

In 2012 the company invested in CDP Reti.



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