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State Grid’s 100 Billion Yuan projects launched to drive growth during special period

Release time: 2020-03-16        bigmeansmall

On February 28, workers were busy with tower erection for Qinghai-Henan ±800kV UHV DC Project on the construction site in Zeku County of Qinghai Province, a place with an altitude of 3,700 meters. On the same day, workers on the site of Zhangbei-Xiong’an 1000kV UHV AC Project in Yi County, Baoding of Hebei Province were also busy at their work in an orderly manner. As of the end of February, State Grid has started and resumed nearly 1,900 power projects with a total investment of more than 100 billion yuan.

The COVID-19 outbreak is like a big test to all. To combat the virus, State Grid has strictly implemented decisions of the Central government, and coordinated epidemic control with its reform and development. It pledged that no less than 50% of its projects would be resumed by the end of February and all outside Hubei by March 15, and has launched 30 measures to accelerate work resumption to benefit the whole industrial chain, boosting the growth and socio-economic development with concrete efforts.

Project Construction Injects Strong Impetus to Economic Development

In Qinghai, Hebei, Shanxi, Henan, and Shaanxi, etc., major UHV projects, pumped-storage power stations and other projects that attracted a lot of attention have been successively resumed and started. As of February 28, State Grid has resumed 58.4% of 35kV and above power transmission and transformation projects covering 45,843 km and 261.95 GVA transformation capacity, reaching the goal of resuming no less than 50% of projects by the end of February ahead of schedule.

The major power projects feature huge investment, long industrial chain, and strong driving force. State Grid has released 12 measures to resume power construction and support enterprises to resume production as part of the efforts to curb the epidemic, launched 10 measures to accelerate the resumption of power transmission projects, and promoted 100 billion yuan infrastructure to restart, stabilizing social expectations and confidence in development.

Qinghai-Henan ±800kV UHV DC Project construction site

As one of the earliest power projects resuming construction, the Qinghai-Henan ±800kV UHV DC Project will drive more than 200-billion-yuan investment in industries such as power generation and create more than 7,000 jobs. Commenced on February 18, the pumped-storage power station in Yuanqu of Shanxi Province has a total investment of 7.96 billion yuan and will bring 2-billion-yuan to power equipment sector. It will annually increase the local fiscal revenue by 150 million yuan on average during construction and by 110 million yuan once put into operation. With a total investment of 18.5 billion yuan, the Shaanbei-Hubei ±800kV UHV DC Project kicked off on February 28 will drive 12-billion-yuan equipment production, create more than 40,000 jobs, and impel over 70-billion-yuan investment in related industries.

According to Guo Fenggang, deputy director of Capital Construction Department , Shaanxi Electric Power Company , the Shaanbei-Hubei UHV DC Project will set up a power expressway for energy transmission between the Northern Shaanxi energy base and the Hubei load center, thus powering the high quality economic and social development of Hubei and its surrounding areas.

Based on the epidemic trend and project schedule, all departments and subsidiaries are taking multiple measures to promote construction on the premise of ensuring personnel safety.

On the Qinghai-Henan UHV DC Project construction site, materials, equipment, and medical supplies are in good order. Gansu Electric Power Company has strived to balance epidemic prevention and safety since resuming work on February 11. In this way, both the epidemic and risks are under control on site, and the project is constructed in a safe and orderly manner

On February 24, the first centralized tendering procurement organized by the headquarters of State Grid, i.e. the first tender for electric wiring materials in 2020, opened the bid as scheduled, which is also the first large-scale centralized procurement by central SOEs in the year. All centralized procurement by the headquarters has been started as planned amid the epidemic, providing a strong guarantee for grid construction and enterprises’ wok resumption.

State Grid Strives for the Annual Goals Despite the Epidemic

2020 is the last year to achieve the goal of building a moderately prosperous society in all respects and the nation’s 13th Five Year Plan. It is also the decisive year in winning the battle against poverty. According to the above-mentioned “12 measures” of State Grid, explicit requirements have been set out for accelerating projects that support poverty alleviation in severely impoverished areas, border villages, as well as power interconnection in Ngari, Tibet. With effective arrangement and vigorous support, at present, a total of 155 35kV-and-above power projects throughout the deeply impoverished areas and 27 35kV-and-above power projects in border villages have resumed construction. This has laid a solid foundation for their completion in the first half of this year.

State Grid gives first priority to resume projects for poverty alleviation and clean energy, serving national strategies, local economic development, and efforts  to win the “three critical battles” (preventing and defusing financial risks, targeted poverty alleviation, and pollution control). In addition, it has also accelerated grid projects for regional development such as Beijing-Tianjin-Hebei integration, and the regional integration of Yangtze River Delta.

All grid projects in this decisive year are under intense construction. Fan Long, the deputy manager of State Grid Hebei Power Transmission and Transformation Company to Xiong'an Ju Village Project, introduced: “We should not have any thoughts of waiting or relaxing. To ensure Xiong’an Ju Village 200kV substation operated on schedule, we adopt parallel operation, conduct multiple-site construction, and allocate staff, reducing the epidemic impact to a minimum.” 

As an important initiative to carrying out three-year plan on defending the blue sky, 35kV and above coal-replacement-with-electricity projects in Beijing, Tianjin, Hebei, and surrounding areas and the Fenwei plains, as well as clean heating in the winter in North China have accomplished 20% work resumption and are attempting to achieve full resumption prior to March 15.

With the 2022 Beijing Winter Olympics approaching, 28 35kV-and-above supporting projects for the Games (including Zhangbei VSC-HVDC Project) were nearly completed in 2019 and the last one – 110kV power transmission project of Beijing Capital Stadium has resumed construction on February 28. Upon completion, the project will power venues for short track speed skating and figure skating. 

Projects Resumption Gives Rise to Great Confidence

The orderly resumption of grid projects has sent strong signals of joint force in face of challenges, and boosted great confidence in epidemic prevention and eco-social development. The project construction gives strong impetus to the upstream and downstream industries such as power generation, electric equipment, energy consumption equipment and raw materials, produce the middle and long-term economic benefits, and play an important role to maintain stable growth, make structural adjustments, and improve living standards.

For the past few days, in factories of power equipment manufacturers in Qinhuangdao of Hebei Province, Changsha of Hunan Province, among other places, key grid equipment such as converter transformers, converter valves, and disconnectors have been under intensive production …… The driving force of power project construction has been amplified through the industrial chain, and transformed to the roar of machines, the moral of workers, and vitality of industries, which has vigorously supported the Chinese economy development. 

Changgao High Voltage Switchgear Group Co. Ltd. employees check equipment to be delivered to Qinghai-Henan ±800 kV UHV DC Project

“The grid project construction promotes our work resumption and has given us great confidence,” Li Hao, the vice general manager of Hunan Changgao High-voltage Switch Gear Co., Ltd. and the head of its production department said. They are responsible for supplying outdoor disconnectors and earthing switches to UHV projects. At present, the products for the Qinghai-Henan UHV DC project have been completed in advance, involving a contract of more than 23 million yuan. 

The industrial chain is closely interconnected. UHV projects have driven equipment manufacturers to resume production, and also indirectly propelled raw material manufacturers to do likewise. Li Hao said: “Our work resumption will surely promote other relevant industries to resume their production as well, and play an active role in resuming the whole industrial chain as soon as possible and speeding up economic recovery.” The insulators, casts, copper products, and aluminum products are the raw materials for producing disconnectors, and suppliers in Shandong, Jiangxi, and Liaoning start work one after the other.

Driven by grid project construction, at present, 15 key equipment manufacturers and key laboratories responsible for supplying main equipment to UHV projects have resumed production. 86 of 91 enterprises responsible for supplying line materials to UHV projects have resumed production.

Power Cost Cut Offers Timely Help for Enterprises

Pursuant to the decisions of the central government, State Grid issued eight measures on February 22 to reduce power cost for businesses by 48.9 billion yuan, which will offer great support to large industrial enterprises and general industrial and business enterprises, and help small, medium and micro enterprises overcome the difficulties. The company actively publicize these measures to make sure all customers benefit from these measures.

State Grid’s Yongkang Power Supply Company of Zhejiang Electric Power Company launched 18 measures on power cost reduction and exemption, online services, and key project construction to benefit the customers and support enterprises. Among these, the company has adjusted rules on electricity charge settlements for enterprises back to work, help them to change, suspend, reduce or resume power billing, ensuring that services required will be concluded on the next day with documents to be submitted later. This has greatly relieved the burden on power consumption of those companies. 

To support work resumption, State Grid Ningxia Electric Power Company has provided service package to enterprises, and adopted measures to alleviate their pressure, benefiting 383,000 enterprises with 150-million-yuan power cost reduction. Ding Xiaoxu, vice general manager of Livzon Group Ningxia Pharmaceutical Co., Ltd. said: “The measures to cut power cost will save us about 1.3 million yuan which is an essential timely help for us.”

Moreover, State Grid continuously improves its services, enhances experience of getting electricity, and secure power supply, so as to promote work resumption for enterprises.

Employees of State Grid Henan Electric Power Company offering door-to-door service to companies back to work

Pingdingshan Power Supply Company of State Grid Henan Electric Power Company streamlines procedures of getting electricity which, in the case of an emergency, will first supply power and then complete formalities so as to ensure the enterprises’ power demands can be met. As for the companies producing epidemic-related supplies, the company provides “three-zero service”, meaning these customers have zero need to visit service halls, zero need to go through approval procedures and zero investment from their side. “Time is money for us. We never thought power can be resumed so promptly during the epidemic. We are now more confident in the full resumption of production,” Chen Wenguang, a leader of Henan Shuanghehuali Pharmaceutical Company told the employees of the power supply company offering door-to-door services.

Sources: Department of Public Relations, Department of Capital Construction, Department of UHV Transmission Projects, Department of Marketing, relevant subsidiaries of State Grid, and State Grid News


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