Massive investment planned to boost transmission capabilities across China with ultra high voltage grid

China’s giant transmission grid will see massive investment over the coming years as the country’s two largest distribution companies plan to invest heavily in high-voltage power grids.

The State Grid Corp of China (SGCC), China’s largest operator with more than half of the electricity distribution system, is to invest yuan 107 billion ($12.9 billion) for construction and repair, according to its 2005 work programme.

The country’s number two, China Southern Power Grid Corp (CSG), will invest a further yuan 30.5 billion ($3.7 billion) developing the transmission system in the five provinces it serves.

According to reported comments from the companies, a significant proportion of this investment will be directed to the development of ultrahigh-voltage power grids, with voltages of 1,000 kV. Currently, China’s grid is mainly based on the 500 kV system.

SGCC apparently plans to make ultra high-voltage grid construction its core business operation for the time being and is in talks with local transmission equipment manufacturers for research and production of the necessary equipment.

CSG is reportedly set to begin building a pilot section of the 1,000 kV grid to transmit electricity from Yunnan’s Zhaotong to Huidong in Guangdong in the second half of the year.

Analysts suggest the ultra high-voltage grid move will be help to solve generation imbalances in different regions by allowing efficient power transmission.