Aarkstore Enterprise 2008 Report on China's Power Grid Construction by aarkstore


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									  Aarkstore Enterprise 2008 Report on China's Power Grid Construction

Although China's general electricity generation has been increasing by more than 10%
almost every year since 2000, the construction of power grids have been unable to satisfy
the demand for power. The annual growth rate of China's investment in grid construction
has often been single digit, and in some years it was only 2%. As a result, there have been
frequent blackouts along China's coasts since 2002.

To make power grids safe and to improve the efficiency of power transmission, Beijing
started paying great attention to the construction of a state grid since 2006. According to
the country's 11th "Five-Year Plan", RMB1,200bn would be invested in grid construction
from 2006 through 2010, which means that the average yearly investment is more than
RMB240bn, 90% more than in the 10th "Five-Year Plan" period.

One of the major problems for China's power industry is that the best resources for power
generation are often in remote regions, far from most power consumers. Data show that
more than two-thirds of the developable hydropower is in the mountainous Tibet and
surrounding areas such as Sichuan and Yunnan provinces, while two-thirds of minable
coal resources are in Shanxi, Shaanxi, and Inner Mongolia. To deal with the problem
caused by geographic distribution of resources, Beijing prefers to build a UHV power
grid, with which power could be supplied in large quantity to distant places without too
many cables. Consequently, trans-regional UHV power grids would be the focus of this
round of construction. The investment by China from 2006 through 2020 in UHV power
grid is expected to be RMB406bn, out of which RMB256bn would go to AC grid and
RMB150bn DC.

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From:Aarkstore Enterprise
Contact: Neel
Email: press@aarkstore.com
URL: www.aarkstore.com

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