State Grid Corporation of China

Sustainable Strategy of State Grid Corporation of China

Sustainable development is the common aspiration of the global community, it is also important for achieving China’s great dream of rejuvenation the nation. State Grid Corporation of China attaches great importance to the development and implementation of sustainable strategies in line with the national conditions and the characteristics of grid companies. The sustainable strategies also provide important guidelines for the transformation of the grid and the company. Below is a brief introduction of the company’s sustainable strategies and practices.

Zhangbei National Energy Storage Project, operated by SGCC in Hebei province, is China’s largest hybrid renewable energy power plant (© Clean Energy Action Project)


First, the basis of the company’s sustainable strategy is to maintain a relatively reasonable over capacity for energy and electricity, so as to meet the power demand for social and economic development with a high standard.

The Chinese government has set a goal to double the GDP and the per capita income of urban and rural residents by 2020 with 2010 as a baseline. In line with this goal, the annual economic growth should be maintained at around 7% for the next 8 years, with a corresponding power installed capacity of 2 billion kilowatts. With a deep understand of the characteristics of large scale and long construction cycle of power investments, SGCC adheres to overall planning, maintaining the necessary pace of development while allowing for appropriate capacity for future development. It has achieved electricity development that is in harmony with the social, economic and environmental development so as to meet the mid to long term requirements of China’s social and economic development.

Second, grasping the historical opportunity for energy restructuring and energy development pattern transformation, the company has proposed a sustainable strategy of building a globally inter-connected grid.

Since the start of the 21st century, there has been a new wave of global energy revolution centered on new energy. Large-scale development and utilization of clean energy has become a common choice for countries in the world for protecting the environment and tackling the climate change issue while meeting the requirement of energy supply. SGCC advocates a holistic approach, taking into consideration the global economic, social and environment conditions. It promotes a globally-connected grid, and a new global system for the development, distribution and utilization of energy, so as to meet the requirement of the sustainable development of human society.

Globally Connected Grid: with UHV grid as its backbone frame (channel), it is a globally connected, strong and smart grid mainly used for delivering clean energy. Clean Alternatives means replacing fossil energy with alternative clean energies for a low-carbon energy approach so as to achieve the transformation from an energy portfolio that mainly consists of fossil energy to one that mainly consists of clean energies. Electricity Replacement means replacing the energy consumption of coals and petrol with that of electricity. Promote the use of electric boiler as well as the use of electricity for heating, cooling, cooking and transportation, therefore improving the percentage of electricity in the terminal energy consumption, reducing fossil energy consumption and environmental pollution.

Third, the core of the company’s sustainable strategy is to accelerate the construction of a strategic platform for the grid to safeguard the construction of China’s modern energy system.

Grid is an infrastructure that integrates energy transmission, market transactions and large scale optimised allocation, which is an important part of China’s modern energy system. SGCC promotes a “special four” strategy (development of UHV power grid, promoting intensive large-scale development of energy from coals, hydropower, nuclear power and renewable sources).

Build a platform for high efficient transmission

China’s energy structure is dominated by coal; this is a long existing condition. Based on a UHV power grid, China will build a comprehensive energy transmission system, fundamentally solve the bottleneck of energy transmission, promoting the comprehensive, efficient and clean use of traditional fossil energy.

Build a safe distribution platform

A mutually complementing platform that integrates coal, hydropower, nuclear power, wind power and solar power can not only meet the power feed-in requirement of random and intermittent power such as wind power, but can also ensure the safety and stableness of the power grid.

Build an economical operation platform

Based on world’s leading power grid scheduling system, coordinate the operations of wind, solar, water and fire energies, so as to improve the overall energy efficiency without sacrificing the use of wind, solar and water powers.

Build a friendly and interactive platform

With the application of intelligent power distribution technology and equipment, promote the friendly in-connection and interaction of electricity loads such as distributed power supplies and electrical cars.

Fourth, fully support clean energy and distributed energy development so as to promote China’s energy transformation.

The company strongly supports the development of hydropower, wind power, and photovoltaic power generation. It has built a UHV power grid which has been operating safely for a long time, transmitting a total of over 200 billion kilowatts of electricity. It is the main channel for large-scale transmission of hydropower in Southwest China, as well as for coal power, wind power and PV power in China’s north and west. We aim to build an intelligent grid covering all aspects of electricity including power generation, transmission, substation, distribution, scheduling and utilisation. We also intend to build the world’s first model that integrates wind and solar power generation with a power storing system and a smart transmission system. By the end of September, the total installed capacity of hydropower in the areas operated by SGCC exceeded 196million kilowatts, and new energy feed-in installed capacity exceeded 100million kilowatts. SGCC has the fastest growing photovoltaic power and the largest scale feed-in wind power among power grids in the world.

Looking forward, SGCC will adhere to a global energy perspective and cooperate with our counterparts in the world so as to build a more beautiful and sustainable world.