Accelerate the Construction of the UHV Accelerate the Construction of the UHV Power Grid and Promote the Power Grid and Promote the

Sustainable Development of Chinese Sustainable Development of Chinese Power IndustryPower Industry

Liu ZhenyaLiu Zhenya

Accelerate the Construction of the UHV Accelerate the Construction of the UHV Power Grid and Promote the Power Grid and Promote the

Sustainable Development of Chinese Sustainable Development of Chinese Power IndustryPower Industry

Liu ZhenyaLiu Zhenya

State Grid Corporation of ChinaState Grid Corporation of China

October 24October 24thth 2005 2005

VLPGO 2005VLPGO 2005

Basic Situation of China’s Basic Situation of China’s

Power GridPower Grid

The development of installed capacity in ChinaThe development of installed capacity in China

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1980 1990 1994 1996 1998 2000 2002 2004

440GW440GW

By the end of 2004, the total installed capacity had By the end of 2004, the total installed capacity had exceeded 440GW with annual power generation of exceeded 440GW with annual power generation of 2190TWh. Starting from 1996, both installed capacity and 2190TWh. Starting from 1996, both installed capacity and annual power generation in China have ranked No. 2 in annual power generation in China have ranked No. 2 in the world.the world.

GW

State Grid State Grid

OthersOthers

NortNortheasheastt

NortNorthh

ChinChinaa

NortNorthweshwestt East East

ChinaChinaCentraCentra

l l ChinaChina

SouthSouth TaiWanTaiWan

China now has 897,000 km of power transmission lines with China now has 897,000 km of power transmission lines with voltage of 35kV and above, total power transformation capacity voltage of 35kV and above, total power transformation capacity of 1.57 billion kVA.of 1.57 billion kVA.

A primary nation wide A primary nation wide interconnection has interconnection has been formed in China been formed in China covering six large covering six large regional power grid.regional power grid.

In 2004, inter-regional energy transmission has reached 65.3 In 2004, inter-regional energy transmission has reached 65.3 billion kWh. billion kWh. It is estimated to reach 74 billion kWh in 2005It is estimated to reach 74 billion kWh in 2005 . .

NortheastNortheast

North North ChinaChina

NorthwestNorthwest

Central Central ChinaChina

AC AC

DCDCTaiWanTaiWan

SouthSouth

East East ChinaChina

Since 1997, there is no major faults related to stability Since 1997, there is no major faults related to stability

happened in China. The average service reliability for happened in China. The average service reliability for

urban grid has reached 99.820% in 2004. urban grid has reached 99.820% in 2004.

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80' s 90' s 21ct

faul ts

The service area of State Grid Corporation of China covers 26 The service area of State Grid Corporation of China covers 26

provinces in China, accounting for 90% of Chinese national provinces in China, accounting for 90% of Chinese national

territory. SGCC provides electricity to more than 1 billion people. territory. SGCC provides electricity to more than 1 billion people.

In the year 2004, SGCC’s total asset exceed 1100 billion RMB; In the year 2004, SGCC’s total asset exceed 1100 billion RMB;

total electric power sales volume reached 1289.1 billion kWh with total electric power sales volume reached 1289.1 billion kWh with

total sales income of 590.1 billion RMB, all of which honored total sales income of 590.1 billion RMB, all of which honored

SGCC ranked No. 40th among the FORTUNE GLOBAL 500SGCC ranked No. 40th among the FORTUNE GLOBAL 500

Opportunities and Challenges Opportunities and Challenges

Challenges in Grid ConstructionChallenges in Grid Construction

By the end of 2004, the per capita installed capacity was By the end of 2004, the per capita installed capacity was only 0.34kW with per capita generation of 1670 kWhonly 0.34kW with per capita generation of 1670 kWh

2005 2020

TWh

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Power consumption

Installed Capacity

GW China’sChina’s GDP will reach GDP will reach

4000 billion US dollars 4000 billion US dollars

in the year 2020. At in the year 2020. At

that time, the total that time, the total

power consumption will power consumption will

be around 4600 TWh, be around 4600 TWh,

and total installed and total installed

capacity will reach capacity will reach

1,000GW.1,000GW.

Newly Installed CapacityNewly Installed Capacity from 1995 to 2005from 1995 to 2005

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1995 1997 1999 2001 2003 2005

In the coming 15 years, Chinese annual power consumption growth In the coming 15 years, Chinese annual power consumption growth

will reach 170 TWh , annual newly installed power generation will reach 170 TWh , annual newly installed power generation

capacity will exceed 33 GW .capacity will exceed 33 GW .

Due to long lasting under-investment of Chinese power grid , plus Due to long lasting under-investment of Chinese power grid , plus

large scale of power generation units put into operation in recent large scale of power generation units put into operation in recent

years, the conflicts brought by a under-developed power grid becomes years, the conflicts brought by a under-developed power grid becomes

very distinct. All of these for the development of Chinese power grid very distinct. All of these for the development of Chinese power grid

are both precious opportunities and big challenges.are both precious opportunities and big challenges.

China has constituted and prepared to implement the 11China has constituted and prepared to implement the 11 thth five- year- five- year-

plan for national economic and social development from 2006 to 2010. plan for national economic and social development from 2006 to 2010.

In the coming five years, China’s development goal is to be inherent on In the coming five years, China’s development goal is to be inherent on

scientific developing guideline, vigorously adjust our economic scientific developing guideline, vigorously adjust our economic

structure, change the economic growth pattern, improve development structure, change the economic growth pattern, improve development

quality and make good efforts to make our society grow in a healthy quality and make good efforts to make our society grow in a healthy

and sustainable way. and sustainable way.

2.2. The sustainable economic, social and environmentalThe sustainable economic, social and environmental development development raised a new task for electric power and raised a new task for electric power and power gridpower grid

According to the plan, China will reduce its unit energy According to the plan, China will reduce its unit energy

consumption of GDP ratio by 20 percent by 2010. consumption of GDP ratio by 20 percent by 2010.

To promote sustainable development of economy and society in a To promote sustainable development of economy and society in a

coordinated way with economic, clean and stable development in coordinated way with economic, clean and stable development in

power industry is the direction in the future. China must insist on power industry is the direction in the future. China must insist on

an intensive development way, attach great importance and an intensive development way, attach great importance and

strengthen energy saving and environmental protection, strengthen energy saving and environmental protection,

contribute our best efforts to the construction of conservation contribute our best efforts to the construction of conservation

society.society.

3. 3. TThe development pattern of Chinese power grid must he development pattern of Chinese power grid must concentrate on improvement of resources configuration concentrate on improvement of resources configuration

optimization ability.optimization ability.

The coal and hydro power mainly allocated in western and northwest China, The coal and hydro power mainly allocated in western and northwest China,

but the energy resources and power consumption are mainly located in Eastern but the energy resources and power consumption are mainly located in Eastern

China and Central China where economy is relatively more developed. The China and Central China where economy is relatively more developed. The

distance between energy base and load center are normally 500-3000 km.distance between energy base and load center are normally 500-3000 km. These basic facts determine that China have to optimize nation wide allocation These basic facts determine that China have to optimize nation wide allocation

of energy resources, and realize large scale and long distance inter-regional of energy resources, and realize large scale and long distance inter-regional

transmission of power with compensated balancing between thermal power transmission of power with compensated balancing between thermal power

and hydro power in order to realize the effective exploration and efficient and hydro power in order to realize the effective exploration and efficient

utilization of resources.utilization of resources.

The existing power system based on 500kv is weak in interconnection, The existing power system based on 500kv is weak in interconnection,

Interregional and inter-provincial power exchange capacity is not sufficient, Interregional and inter-provincial power exchange capacity is not sufficient,

resulted in unsatisfying the demand of resources, but also bringing negative resulted in unsatisfying the demand of resources, but also bringing negative

impacts to the safe and stable operation of power grid and reliable power supply impacts to the safe and stable operation of power grid and reliable power supply

due to issues like long-term overloading of major connection lines and short due to issues like long-term overloading of major connection lines and short

currency over limit become more and more imminent. In order to effectively currency over limit become more and more imminent. In order to effectively

secure the power supply for future economic and social development, we must secure the power supply for future economic and social development, we must

start construction of a strong network based on higher voltage level.start construction of a strong network based on higher voltage level.

4. 4. It is urgent to construct higher voltage power grid.It is urgent to construct higher voltage power grid.

The Construction of UHV power grid is the tendency of The Construction of UHV power grid is the tendency of

the development of State Power Grid in the future.the development of State Power Grid in the future.

Base on analysis of current situation and power supply characteristics, Base on analysis of current situation and power supply characteristics,

and according to the development trend of power industry and power and according to the development trend of power industry and power

grid in China, State Grid Corporation of China brings forward the grid in China, State Grid Corporation of China brings forward the

development concept of accelerating the construction of UHV power development concept of accelerating the construction of UHV power

grid with 1000KV AC andgrid with 1000KV AC and±±800KV DC power transmission.800KV DC power transmission.

1. 1. The construction of UHV power grid is the objective The construction of UHV power grid is the objective for the development of Chinese power industry.for the development of Chinese power industry.

UHV power grid will push the intensive development of large UHV power grid will push the intensive development of large

coal-power, large hydro-power and large nuclear power, which coal-power, large hydro-power and large nuclear power, which

will promote the effective exploration and utilization of energy will promote the effective exploration and utilization of energy

resources in Western China area such as Xinjiang Autonomous resources in Western China area such as Xinjiang Autonomous

Region and Tibet Autonomous Region; improve the Region and Tibet Autonomous Region; improve the

comprehensive energy utilization efficiency; and promote comprehensive energy utilization efficiency; and promote

international electric energy exploration and cooperation with international electric energy exploration and cooperation with

surrounding countries.surrounding countries.

For long-distance, large capacity power transmission, UHV transmission line For long-distance, large capacity power transmission, UHV transmission line

has distinctive advantages. The construction of UHV power grid can greatly has distinctive advantages. The construction of UHV power grid can greatly

reduce line loss, decrease transmission circuits, saves land resources and reduce line loss, decrease transmission circuits, saves land resources and

construction investment.construction investment.

The construction of UHV power grid can also fully exert the network benefits The construction of UHV power grid can also fully exert the network benefits

of large power grids; improve security and economic operation level of the of large power grids; improve security and economic operation level of the

power grid. Especially by researching and manufacturing of those key power grid. Especially by researching and manufacturing of those key

technology and equipments of UHV, it will promote Chinese electric power technology and equipments of UHV, it will promote Chinese electric power

technical innovation, improve the manufacturing standards of Chinese technical innovation, improve the manufacturing standards of Chinese

manufactures.manufactures.

According to the plan, it is anticipated that around 2020, the UHV According to the plan, it is anticipated that around 2020, the UHV

backbone network will be preliminarily completed. The ability and scale of backbone network will be preliminarily completed. The ability and scale of

power grid to optimize resources allocation will be greatly improved. This power grid to optimize resources allocation will be greatly improved. This

will greatly improve efficient exploration and utilization of Chinese energy will greatly improve efficient exploration and utilization of Chinese energy

resources. At that time, SGCC will form a power grid with interregional or resources. At that time, SGCC will form a power grid with interregional or

even international transmission capacity over 250GW by UHV line. The even international transmission capacity over 250GW by UHV line. The

operational stability and anti faults ability will also be greatly improved.operational stability and anti faults ability will also be greatly improved.

By organization and coordination of relevant government agencies, By organization and coordination of relevant government agencies,

SGCC is actively promoting the UHV power grid development planning, SGCC is actively promoting the UHV power grid development planning,

key technology research and preliminary work for relevant projects. key technology research and preliminary work for relevant projects.

Productive progress has been achieved.Productive progress has been achieved.

The successful completion and operation of 750kv project in this The successful completion and operation of 750kv project in this

September has accumulated precious experiences for us. The successful September has accumulated precious experiences for us. The successful

experiences of UHV transmission line construction and operation in the experiences of UHV transmission line construction and operation in the

world also provide us with instructive references.world also provide us with instructive references.

2. The Chinese Government attaches great importance 2. The Chinese Government attaches great importance and highly support the SGCC’s concept on developing and highly support the SGCC’s concept on developing UHV power gridUHV power grid..

At present, the research and development of the first 1000kv AC UHV At present, the research and development of the first 1000kv AC UHV

project is urgently being carried out. We will try our best to have an project is urgently being carried out. We will try our best to have an

earlier start for the project.earlier start for the project.

UHV power grid is an important orientation for technical development of UHV power grid is an important orientation for technical development of

power grid. The development of Chinese UHV power grid will vigorously power grid. The development of Chinese UHV power grid will vigorously

promote the self-innovative of electric power industry and will surely push promote the self-innovative of electric power industry and will surely push

the power grid technology development and application in world wide. the power grid technology development and application in world wide.

State Grid Corporation of China do hope to strengthen our cooperation State Grid Corporation of China do hope to strengthen our cooperation

with all utilities in various countries. with all utilities in various countries.

VLPGO has provided Chinese and foreign power grid utilities a nice VLPGO has provided Chinese and foreign power grid utilities a nice

platform to further communicate and cooperate. We highly value the platform to further communicate and cooperate. We highly value the

opportunity and look forward to launching international cooperation opportunity and look forward to launching international cooperation

based upon equality and mutually sharing benefit principle to achieve based upon equality and mutually sharing benefit principle to achieve

high efficiency and jointly work together for the goal of sustainable high efficiency and jointly work together for the goal of sustainable

development of power industry for our countries. development of power industry for our countries.

Thank you!Thank you!