State Grid Corporation of China

State Grid Corporation of China
	File:State Grid Corporation of China logo.svg Logo of the State Grid Corporation of China
Company type	State-owned enterprise
Industry	Electric utility
Founded	December 29, 2002; 23 years ago in Beijing, China
Headquarters	Beijing, China
Area served	China, international (including Brazil, Italy, Portugal, Australia, Greece, Georgia, Oman, Philippines)
Key people	Shu Yinbiao (Chairman and Party Secretary)
Products	Electric power transmission and distribution
Owner	Government of China (via SASAC)
Number of employees	1,300,000 (2023)
Website	www.sgcc.com.cn

The State Grid Corporation of China (SGCC), frequently referred to as the State Grid, is a state-owned electric utility enterprise based in China and holds the distinction of being the largest utility company worldwide. As of March 2024, it stands as the third highest revenue-generating company globally, trailing only Walmart and Amazon, while also being the top government-owned enterprise by revenue. In 2023, State Grid reported a revenue of US$546 billion, employed approximately 1.3 million individuals, and provided services to around 1.1 billion customers. The corporation operates under the oversight of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

Following the 2002 reform known as the electricity Plant-Grid Separation, the assets of the former State Electric Power Corporation were reorganized into five power generation entities and five regional subsidiaries managed by State Grid Corporation of China, which is headquartered in Beijing.

History

As a key central state-owned enterprise under SASAC’s supervision, State Grid has been at the forefront of advancing clean energy technologies within China.

The reform process in China’s power sector began in 1986 and culminated in 2002 when the State Council restructured the electric power framework to foster competition by separating power generation from transmission. On December 29, 2002, SGCC was formed through the division of the former State Power Corporation into two grid companies—State Grid Corporation of China and China Southern Power Grid Company—alongside five generation groups and four auxiliary firms. SGCC manages approximately 80% of China's grid infrastructure, with China Southern Power Grid covering the remaining 20%. At its establishment, SGCC had an installed generation capacity totaling 6.47 gigawatts.

Between 2003 and 2005, widespread electricity shortages resulted in rolling blackouts that caused an estimated financial loss of one trillion yuan for SGCC. The company made significant advancements in power transmission technology, including launching the first 1,000-kilovolt alternating current transmission line in 2009 and an 800-kilovolt direct current line in 2012 that transported hydropower from western Sichuan to Shanghai. Additionally, SGCC developed critical alternating current transmission corridors connecting northern and southern regions.

Starting in 2011, SGCC began transferring operational assets from regional grid entities to provincial-level network companies. At the same time, it initiated a phased smart-grid project spanning from 2011 to 2015 that prioritized ultra high voltage (UHV) lines to improve power transmission capacity nationwide. By 2015, several UHV lines were planned to traverse key provinces such as Inner Mongolia, Shanxi, and Anhui.

In 2013, SGCC formed a Board of Directors with Liu Zhenya appointed as Chairman and Party Secretary. Liu implemented a strategy known as "one special, four large," which emphasized UHV grids ("one special") alongside hydropower, coal, nuclear, and renewable energy sectors ("four large"). Under his leadership, investments in UHV technology research were significantly increased through specialized engineering teams.

In 2014, Feng Jun, then general manager of State Grid Shanghai Municipal Electric Power, was detained during an anti-corruption campaign; he was subsequently sentenced to life imprisonment in 2017 for accepting bribes totaling assets worth 53 million yuan.

In 2015, SGCC introduced the Global Energy Interconnection concept aimed at establishing integrated global smart grids with ultra high voltage networks connecting more than 80 nations. This initiative has received strong backing from Xi Jinping’s administration and has been promoted at international platforms including United Nations forums.

Following Liu’s retirement in 2016, Shu Yinbiao succeeded him as Chairman and Party Secretary. Shu maintained the "one special, four large" approach while adding a focus on "re-electrification," which involves substituting coal and petroleum-based power generation with renewable electricity sources.

By 2024, SGCC remains the largest energy utility worldwide and held third place among global companies by revenue according to the Fortune Global 500 list for 2023. It operates nearly all of China’s energy transmission infrastructure.

Overseas investments

In 2008, Liu Zhenya, then general manager of State Grid, founded State Grid International Development Company to oversee the corporation's international investment activities. By 2012, this entity was reorganized to report directly to the State Grid parent company.

By 2019, State Grid had established ten international offices and forged collaborations in countries such as the United States and Germany, as well as with global institutions, focusing on projects like smart grid technology advancement.

As of 2021, the company held partial stakes or managed electricity assets in nations including Brazil, Italy, Portugal, Australia, Greece, Georgia, Oman, and the Philippines. It had also constructed or enhanced power infrastructure across more than 30 countries spanning Asia, Africa, and Latin America, while exporting electrical equipment to upwards of 70 countries worldwide.

Philippines

On December 12, 2007, a consortium led by Monte Oro Grid Resources Corp., which included the State Grid Corporation of China and Calaca High Power Corp., secured a $3.95 billion bid to operate the Philippines' power transmission network for a 25-year term. This privatization effort involved taking over management of the government-owned National Transmission Corporation (TransCo), surpassing rivals such as San Miguel Energy.

This group formed the National Grid Corporation of the Philippines (NGCP). The concession agreement between TransCo and NGCP commenced on February 28, 2008. By November of that year, the Philippine Congress granted NGCP a franchise under Republic Act 9511—ratified by President Gloria Macapagal Arroyo—to manage and operate the national transmission system.

On January 15, 2009, TransCo officially handed over control of operations, maintenance, management, construction, expansion activities, and eminent domain rights for the Philippine power grid to NGCP. This initiated a 25-year concession period with an option to renew for another 25 years—potentially extending control to half a century—effectively privatizing grid operations after more than seventy years under government agencies such as the National Power Corporation. The concession is scheduled to conclude on December 1, 2058.

Other countries

In Portugal, State Grid acquired a 25% ownership interest in REN during its privatization phase from 2012 to 2014.

In Australia, it holds a 41% share in ElectraNet, owns 19.9% of AusNet Services, and controls 60% of Jemena.

Within Brazil, State Grid is engaged in developing, constructing, and operating hydropower plants. It gained majority control of CPFL Energia S.A. through a $3.4 billion acquisition in 2017 and built a 2,000-kilometer Ultra High Voltage transmission line supplying hydropower to Rio de Janeiro and São Paulo.

In Chile, State Grid acquired Chilquinta Energía—the third-largest electricity distributor—and Tecnored SA from U.S.-based Sempra Energy in June 2020. Later that year in November, it agreed to purchase Compañia General de Electricidad (CGE), Chile's largest electricity distribution company.

In Italy, it holds a 35% stake in CDP Reti, which owns one-third of Terna and Snam—the country's primary power and gas grid operators.

Subsidiaries

State Grid Yingda Group
- Yingda International Trust (89.76%)

External links