Signed by Enel Group CEO and general manager Fulvio Conti and SGCC chairman Liu Zhenya, the agreement will also enable the companies to exchange experiences in the implementation of renewable energy generation.

Conti said the agreement marks the beginning of an important partnership that recognizes Enel’s potential contribution through its technology and experience and the significant strides being made by SGCC in the field of smart grids and renewable energy.

"I am confident that Enel’s ongoing cooperation with the leading Chinese energy companies such as State Grid will create value and opportunities for everyone involved," Conti added.

In addition, the companies are expected to sign a cooperation framework agreement within the first half of 2014, which encompasses cooperation in the field of joint technology development, carbon strategy, power sector investment, and academic exchanges through the respective research foundations.

The electricity demand in China will account for 31% of global demand by 2035 with emissions expected to become double of that of the US, if no new actions are taken, according to the 2013 World Energy Outlook published by the International Energy Agency.