Determined to Reform, Innovate and Make Breakthroughs,
State Grid is to Create a New Landscape of Quality Development
——2019 New Year Greetings from State Grid
As we usher in the new year, we would like to extend our sincere greetings and best wishes to all leaders, friends, partners and customers, active and retired staff and their families.
The year 2018 begins the implementation of the guidelines mapped out by the Party's 19th National Congress and marks the 40th anniversary of China's Reform and Opening-Up. Over the past year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, State Grid has carried out the decisions of the Party Central Committee and the State Council, practiced the new development philosophy with strategic goals for the new era. Led by Party building with focus on safety, customers, innovation and reform, State Grid is making every effort to overcome difficulties for high-quality development, endeavoring to build a world-class enterprise with achievements of new highs across all aspects. State Grid has been awarded A Class rating from the State-owned Assets Supervision and Administration Commission (SASAC) for 14 consecutive years, and ranked second in the Fortune Global 500 for three consecutive years.
We have prioritized political construction to strengthed the “root” and “spirit” of state-owned enterprises. With Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era always in minds, we have firmly adhered to the "Four Consciousnesses” and “Four Self-Confidences", uphold the core position of General Secretary Xi Jinping and the authority of Party Central Committee. We put the guiding principles from the Party's 19th National Congress and the spirit of National Party-Building Work Conference of State-Owned Enterprises into action, and implemented the program of "Holding the banner high, to reach new peak within three years" to comprehensively improve the quality of the Party building. Members of 4,284 Party Service Teams pioneered in the front line of urgent and dangerous tasks, ensuring power for all and bridging the Party and the people. Zhang Liming, the head of the Party Service Team of Tianjin Electric Power Company, was awarded the title of “Model of the Times” and “Pioneer of Reform” who became a role model for industrial workers in the new era.
We are committed to being a utility by the people and for the people, providing safe, reliable and quality power supply for economic and social development. Facing challenges such as large-scale integration of the renewables, recorded-high power loads and frequent natural disasters, State Grid has ensured safe and stable operation of the grid and a reliable supply of electricity. Security Power for major events such as the Beijing Summit of the Forum on China-Africa Cooperation were completed successfully. Damaged power facilities by natural disasters such as blizzards and major storms and mountain collapses were recovered in minimum duration, winning acknowledgement by governments at all levels as well as the people. We have implemented eight major projects for people’s better livelihood, while in Beijing and Shanghai, we promoted a new model of power service to small and micro enterprises, so as to enable easier power supply application, improve service quality with better business environment. Our 95598 service hotline ranked first in the customer perceived value evaluation by the China Consumers Association. In the Doing Business Report released by the World Bank, China jumped from 98th in 2017 to 14th in 2018 in terms of “Getting Electricity” indicator.
We regard grid development as our top task serving China's energy transition and pollution prevention action. Five AC and five DC UHV projects has been included in the national plan. Qinghai-Henan UHV DC project and the four UHV AC projects, to which President Xi has attached great importance, have kicked-off construction. A number of key projects such as the Central Tibet Power Grid Interconnection Project have put into operation. with trans-provincial power transmission capacity reaching 200 GW. A total of 28 pioneering demonstration zones for world-class distribution networks have been built, and the power grid of the Xiong'an New District has entered the planning stage. State Grid stands to fully promote the consumption of clean energy, and cut the volume and rate of curtailment of renewable energy. State Grid promotes the clean heating in North China through "replacing coal with electricity", realizes the full coverage of shore power in the Yangtze River basin, and is winning the battle against haze.
We leverage electric power as a driver for poverty alleviation and rural vitalization. We formulate and implemente a special plan for power grid construction in poverty-stricken areas, and comprehensively promote the transformation and upgrading of the grid in “three regions and two prefectures” (excluding Yunnan Nujiang Prefecture) and 381 poor counties. We have implemented the State Grid Sunshine Poverty Alleviation Program and accumulatively connected 17.56 GW of photovoltaic power stations, benefiting 2.39 million poor families. Eleven photovoltaic poverty alleviation power stations have been built across Maduo, Qinghai, and various measures have been taken to help those areas escape poverty. Serving the rural revitalization strategy, State Grid has compiled a rural power grid development plan, built 74 demonstration towns and realized full coverage of the power supply across all villages (apart from Tibet). State Grid is the only central state-owned enterprise that has won the National Poverty Alleviation Award for Innovation on Organization .
We work to thoroughly implement power industry reform and state-owned enterprises reform, and continue to share the benefits of the reform. In accordance with the reform plan determined by the central government, State Grid has been actively and steadily advancing the pilots of the power spot market and incremental power distribution, and comprehensively promoted the transformation and standardization of power trading & exchange entities, achieving an annual market-based trading volume of power of over 1600 TWh. State Grid fulfilled and surpassed the target of “cutting the electricity tariffs for general industrial and commercial businesses by an average of 10%.” Across 10 major aspects including UHV DC projects, incremental power distribution and pumped storage, we comprehensively promote mixed-ownership reform and actively introduce public-private partnerships. In expanding their autonomy in operation, three market-oriented subsidiaries of State Grid have been included in the “Actions for 100 Selected Subsidiaries of Central State-owned Enterprises and 100 Selected Major Local State-owned Enterprises ” reform plan of SASAC, and have essentially completed the task of stripping off public service functions undertaken by enterprises.
We insist on innovation-driven development and continuously enhance corporate vitality and growth momentum. We have successfully developed core technologies such as ±1100 kV UHV DC transmission, built a number of world-leading innovative demonstration projects and begun construction of the world's first flexible DC demonstration project with network characteristics in Zhangbei. Relying on technological innovation, we will vigorously cultivate new businesses of strategic importance and make breakthroughs in smart chips, Internet of Vehicles, e-commerce and comprehensive energy services. The ±800 kV UHV DC transmission project and the Xiangjiaba-Shanghai Demonstration Project won the National Science and Technology Progress Award and the China Industry Award , respectively. A total of 61 international standards have been compiled by State Grid, and the number of our granted patents has ranked No. 1 among central state-owned enterprises for eight consecutive years.
We work hard to improve quality and efficiency and ensure the preservation and appreciation of state-owned assets. State Grid has vigorously increased supply and sales and reduced expenditures, while the electricity sales growth rate is at its highest point in six years. State Grid vigorously reduce the number of existing legal entities within our group, clean up and dispose inefficient assets, and introduce low-cost overseas funds. Efforts to move up the ladder in the industrial chain and integrate the financial and industrial businesses have achieved practical results. State Grid has made new progress in serving the “Belt and Road” Initiative, and President Xi witnessed of State Grid's signing of the Pakistan Matiari-Lahore DC project as well as the MOU with REN of Portugal. Contributions from industry, finance and international business to the group's profit reach a record high.
The achievements of State Grid in 2018 are the latest embodiment of the brilliant accomplishments of China's power grid industry in the 40 years since the Reform and Opening-Up began. Under the guidance of the Party, China's power grid industry has developed rapidly and made major breakthroughs over the past 40 years, achieving huge leaps and providing powerful guarantees to China's average annual GDP growth rate of 9.5%, as well as significant improvements in people's living standards. Today's State Grid has owned the largest grid with the largest installed capacity, the highest voltage level and the strongest energy allocation capabilities around the world. It is also the only large-scale power grid in the world that has not experienced any large-scale blackouts in the past two decades.
To review these results is to remember why we started, and thus determine how to better move forward. The year 2019 marks the 70th anniversary of the founding of the People's Republic of China and is crucial to secure a decisive victory in finishing the building of a moderately prosperous society in all respects. Doing a good job throughout the year is of great significance. The Central Economic Work Conference analyzed the current economic situation and deployed economic work in 2019, which has pointed out direction and provided guidance for our work. We maintain a sober mind in regards to the complexity and severity of this year’s situation and are fully prepared to deal with the most difficult challenges. We have always firmly believed in the strong leadership of the Party Central Committee and the bright future of the Chinese economy, and we are full of confidence in our efforts to overcome difficulties and turn crises into opportunities.
In the new year, State Grid will be committed to the guiding principle from the Party's 19th National Congress and the spirit of the Central Economic Work Conference, adhere to steady progress, comprehensively practice the new development philosophy and implement the policy of “consolidating, enhancing, upgrading and smoothing”. We will keep on working with great determination to reform, innovate, and make breakthroughs. We will continue to exert efforts toward building State Grid into a platform to share resources and solidly promote the quality development of the company and the power grid.
Through this work, we will unswervingly uphold the leadership of the Party, study Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, carry out the decisions of the central government, and earnestly implement the "Two Resolute Upholds."
We will always adhere to the scientific development of the power grid, improve the input-output ratio, play the role of the grid as the key infrastructure that supports rural revitalization and win the "three major battles". We will always be dedicated to making state-owned assets stronger and better, tightening our budget, vigorously increasing efficiency and revenue, reducing expenditures and effectively preventing and defusing various types of operational risks. We will always hold high the banner of reform, maintain greater determination in efforts to implement reforms, resolutely break down institutional obstacles, share the benefits of reform, stimulate vitality, improve efficiency and promote development. We will also maintain the drive of innovation, focus on introducing a number of key technologies and jointly promote new businesses and innovate business models, as well as seize the commanding heights of energy production and the consumption revolution. Additionally, we will always attach great importance to fulfilling our corporate social responsibility, continuously improve power supply services and the power-related business environment, enhance the satisfaction of customers and achieve common development with our partners. We will always rely on employees to run enterprises, implement the Party's organizational route in the new era, build a loyal and clean workforce, promote the spirit of model workers, craftsmanship and entrepreneurship, and encourage the staff to take the initiative to become a strong guarantee for the cause.
In his speech at the grand gathering to celebrate the 40th anniversary of reform and opening-up, President Xi Jinping pointed out that, "A great dream is not realized by waiting or crying, but instead by fighting and doing." Standing at a new higher starting point, State Grid will rally closely around the Party Central Committee with Xi Jinping at its core, seeking truth from fact and being pragmatic, diligent, down-to-earth and giving full play to the "six forces" of state-owned enterprises. To greet the 70th anniversary of the founding of the People's Republic of China, we will make new and greater contributions to securing a decisive victory in building a moderately prosperous society in all respects and achieving the Two Centenary Goals.
Chairman Kou Wei
President Xin Bao’an