Currently, SGCC has an overseas investment of more than $ 10 billion and a total overseas asset of $ 40 billion with all investment projects making profits. In the past few years, SGCC has been expanding overseas investment, promoting international productive capacity cooperation and increasing the export of electric engineering equipment under the guidance of the "Going Global" Strategy and the "Belt and Road" Initiative proposed by the Central CPC Committee and the State Council. During the "12th Five-Year Plan" period, SGCC carried out a series of projects in construction, equipment export and technological services with a contracted value of $ 23.3 billion, introducing Chinese electric engineering equipment, security control equipment, automatic dispatch systems and cutting-edge electric and electronic products to more than 70 countries and regions.
SGCC's first step on the path to "Going Global" started in January 2009, when SGCC acquired 40% shares of the Philippines' national grid with concession rights. Since then, SGCC has expanded its investment to Brazil, Portugal, Australia and Italy with all eight projects making profit. These projects, with impressive performance and high ROI, have been fully recognized by local governments. For example, State Grid Brazil Holding S.A. (SGBH), wholly owned by SGCC, has been awarded as Brazil's Best Enterprise in Power Industry twice for its outstanding performance. REN saw a significant improvement in fiscal data after selling some of its shares to SGCC, making it the only Portuguese company that is defined as an investment grade company by all three international credit rating agencies.
EETC 500 kV transmission project in Egypt is the first international productive capacity cooperation project between China and Egypt with a contracted value of $ 758 million. By now, the project has helped Chinese power equipment and products worth nearly RMB 5 billion to be exported to Egypt. In terms of international productive capacity cooperation, SGCC optimized and integrated all resources available and established a cooperation model covering technology, equipment, design and construction to expand its business in project contracting, set equipment export and consulting services in Asia, Africa, Europe and South Africa. Now, it has undertaken key power grid projects in countries like Egypt, Ethiopia, Poland, Myanmar and the Laos.
Zhu Guangchao, Assistant Chief Engineer and Director of Department of International Cooperation, SGCC, pointed out that the main feature of SGCC's "Going Global" strategy is to stick to independent innovation, and rely on cutting edge technologies and advanced large grid management experience to be more competitive in the global market with following international standards and promoting globalization as the strategy.
UHV technology is a cutting-edge technology developed by SGCC with independent intellectual property rights. At the same time, SGCC has rich experience in operating grids with an installed capacity of 1 TW, making it the only grid in the world that hasn't experienced large-scale blackouts. With advanced technology and rich management experience, SGCC won the bid for national level overseas power transmission and grid construction projects for multiple times, including the concessions of the first phase and second phase of Belo Monte UHV DC Transmission Project in Brazil.
Standards play a crucial rule in international competition. SGCC managed to have greater influence and more say in the global power industry through strengthening exchanges and cooperation with international organizations, taking important positions in international organizations and actively participating in setting international standards. In recent years, SGCC has been working on 36 international standards, with 14 of them having been established.
To improve the capability of managing overseas asset investment projects and preventing risks, SGCC has been promoting localized operation in investment destinations. Take the wholly-owned power company in Brazil, SGBH as an example, SGCC only sent a management team of 30 people with all other employees, from management staff to technical workers, being local people. At the same time, SGCC has been committed to taking social responsibilities for the well-being of the local community. For example, it sponsored the education program for children living in slums in Brazil, which was spoken highly of by the local people and was awarded with "Best Practice of Corporate Social Responsibility Management" by UN Global Compact. Besides, SGCC respects local traditions in an attempt to get itself fully involved into the political and social life of the local area.
Source: People's Daily