China’s distribution network needs greater investment, says regulator

The State Electricity Regulatory Commission (SERC), China’s power industry watchdog, has said that the country’s power grid operators need to invest more in distribution networks to improve supply capacity as part of measures to combat power shortages, reports Reuters.

The country’s dominant distributor State Grid Corporation of China’s (SGCC) investment in its networks below 220 kV trailed expenditure on its 220 kV and greater networks between 2006 and 2010.

SERC said in its report that this gap would widen from 2011 to 2015.

According to Reuters, SGCC favours a plan to build an ultra-high voltage power transmission network – comprising 800 kV DC and 1000 kV AC power lines – to boost China’s long-distance transmission capacity and consolidate its control over regional grids.

The SERC reports findings however were not all negative, with smaller China Southern Power Grid Company Limited’s spending on networks below 220 kV topping its investment in 220 kV plus networks since 2009.

A trend that would be maintained until at least 2015, the report found.

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