Perspective of the "going out" strategy of the State Grid Corporation of China

From a domestic perspective to a global perspective, from import to export, the State Grid Corporation of China achieved remarkable results in its international operations. For a long period of time in the past, China’s power industry has been a follower of the international community. It is necessary to continuously introduce advanced foreign technology and equipment to learn advanced foreign management experience to improve the performance and level of power grid development.

After unremitting efforts in recent years, this situation has undergone tremendous changes. The Chinese power companies represented by the State Grid Corporation of China, through independent innovation and hard work, have greatly improved the power technology and management level, and have internationalized operating capabilities and international influence. The force has increased significantly.

In 2008, the State Grid Corporation successfully won the concession rights of the Philippine National Power Transmission Grid. In 2010, it successfully acquired Brazil's concession rights for certain transmission grids, and is currently deeply developing the international grid investment and operation market.

In addition, China's power grid technology is also "going out." State Grid Corporation of China has signed cooperation agreements with Russian power grid companies and U.S. power companies, and will cooperate in UHV, smart grid and clean energy. In a few short years, the relationship between the State Grid Corporation of China and foreign power companies realized the transposition from “disciple” to “master”.

Complex grid accumulates management experience

From catching up to surpassing, the fundamental lies in the overall improvement of strategic leadership and the ability of the enterprise. China's power grid is the world's highest voltage level, largest and most complex power grid, China is facing a series of challenges such as rapid economic growth, unbalanced distribution of resources and demand, and rapid development of clean energy, compared with other countries, the development of external environmental conditions More complicated, more difficulties and problems to overcome. This requires scientific planning and leading strategic leadership. At the same time, under such challenges and training, it also creates conditions for realizing technical and managerial innovation, accumulating management experience, cultivating high-quality workforce, and achieving leapfrogging and surpassing. .

State Grid Corporation of China established an internationalization strategy in 2004, providing scientific guidance and strong ideological guarantees for the company's international development. During the "Eleventh Five-Year Plan" period, all units of the company's system integrated the company's system resources according to the principles of unified planning, overall coordination, centralized resources, and key promotion, giving full play to the advantages in technology, management, and power grid operations, and fully exploiting overseas engineering designs. Construction management, grid technology and management consulting, asset maintenance and supply services, and export of power technology equipment have achieved good results.

The “going out” strategy can achieve remarkable achievements, and independent innovation is the fundamental support. The company has broken through the series of key technical problems in the planning, design, construction, operation and equipment manufacturing of 1000 kV AC and ±800 kV DC UHV power transmission and transformation, and launched a three-in-one safety defense system for the power grid: steady state, dynamic and transient. It has independently developed the basic platform for the smart grid dispatching technical support system and the UHV substation automation system. It is at the international advanced level in terms of power grid safety control and protection technology, and the ability and level of safe power grid operation and management have also been increasing year by year.

At the same time, the company has accumulated rich experience through systematic innovation and continuous efforts in the planning, design, construction, dispatching and operation of transmission and distribution networks, and has enhanced the company’s management and management level by vigorously advancing the construction of “four modernizations”. The "going out" strategy has laid a solid management foundation. In terms of power grid planning and construction, power grid operation, power grid production, and marketing services, etc., they all submitted satisfactory questionnaires. The power grid emergency response capability has withstood severe tests once and for all.

It's not just the power grid that outputs

"Going out" is a strategic choice to expand its own development space, and it is also an objective need to improve China's industrial competitiveness.

The “going out” of the State Grid Corporation of China not only effectively expands the business development space, enhances the company’s sustainable development capacity, enables the company to be comprehensively tempered, but also effectively drives the development of the entire industry chain of the upstream and downstream industries and enhances its international competitiveness. Deepening the strategic cooperative relationship between China and emerging market countries, expanding China’s strategic influence in the adjustment of world politics and economic structure, and enhancing the country’s soft power are concrete manifestations of the central government’s fulfillment of its social responsibility and historical mission.

Internationalized operation is an effective way for the company to further expand its development space. Through international exchanges and cooperation, we have effectively promoted the recognition and promotion of UHV and other independent innovation technologies worldwide. The company’s overseas operations in emerging market countries also bring good economic benefits to companies, such as various operations of the Philippines project. The indicators are good and the payback period can be shortened. In addition, through overseas operations, it has accumulated valuable experience in the operation and management of overseas power grids. By learning from international practices and concepts, applying international best practices feedback to domestic operations and management will help promote the development of China’s power industry. Provide better domestic electricity service.

Using the international market can also create a high-level talent team. Internationalized operation can effectively use overseas power grid operation resources. The company regards international operation as a platform for fostering international talents, cultivates a large number of high-level management talents with international perspectives, and builds up with the company's international operation and scientific sustainable development. The talent team has laid a solid foundation for the improvement of the company’s overall strength and corporate quality.

Electricity is a basic industry, involving many industries such as power planning, equipment manufacturing, machinery manufacturing, material processing, and construction. Taking the Philippine project as an example, the project has driven the Chinese companies such as the West Electric Group to significantly increase the contract and amount of the Philippine bid-winning project, effectively stimulating the export of China's electromechanical products, project contracting services, and export of overseas electric power consulting services. In 2009, the export of electrical equipment exceeded US$1.7 billion.

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