State Grid Corporation of China
Corporate brand
UnclaimedChina's state-owned electricity transmission and distribution enterprise and one of the world's largest utilities.
Last updated October 14, 2026
Overview
State Grid Corporation of China, commonly known as State Grid, is a centrally administered Chinese state-owned enterprise responsible for operating most of mainland China's electricity transmission and distribution network. It was established on 29 December 2002 during a major restructuring of China's power sector. The reform separated electricity generation from grid transmission and divided the former State Power Corporation of China into two grid companies, five generation groups, and several ancillary businesses. State Grid became the larger of the two national grid enterprises, while China Southern Power Grid assumed responsibility for a separate southern region. State Grid's core activities include investment in power-grid infrastructure, electricity transmission and distribution, network construction, system dispatch, equipment development, grid maintenance, and electricity supply services. Its domestic network serves most of China, while China Southern Power Grid operates in Guangdong, Guangxi, Yunnan, Guizhou, and Hainan. State Grid has therefore been central to China's efforts to connect large western and northern generation resources with heavily industrialized and urbanized areas in the east and south. A defining feature of State Grid's technical strategy has been the development of ultra-high-voltage transmission. These systems are designed to move large quantities of electricity over long distances with lower transmission losses than conventional networks. State Grid commissioned China's first 1,000-kilovolt alternating-current line between northern Shanxi and central Hubei in January 2009, and later developed 800-kilovolt direct-current transmission projects, including a line carrying hydropower from Sichuan toward Shanghai. Ultra-high-voltage corridors became an important part of China's broader strategy for integrating hydropower, coal-fired generation, nuclear power, and rapidly expanding renewable-energy capacity. The company also pursued smart-grid and electrification programs. During the 2011–2015 period, it participated in a large national smart-grid initiative and emphasized the integration of advanced grid controls, digital monitoring, long-distance transmission, and more flexible electricity use. Under the strategy associated with former chairman Liu Zhenya, State Grid promoted the concept of Global Energy Interconnection, a proposal for linking national and regional power systems through smart grids and ultra-high-voltage networks. Later leadership placed additional emphasis on re-electrification, using electricity generated from lower-carbon sources to replace direct consumption of coal and petroleum where technically and economically practical. State Grid expanded internationally through State Grid International Development, established in 2008 to coordinate overseas investment. Its activities have included ownership stakes, concessions, construction, and operation of electricity transmission, distribution, and related energy assets. International holdings and projects have included the National Grid Corporation of the Philippines, stakes in Portugal's REN, Australia's ElectraNet, AusNet and Jemena, Italy's CDP Reti, Greece's ADMIE, and electricity businesses in Brazil and Chile. The company has also exported grid equipment and engineering services to countries in Asia, Africa, and Latin America. State Grid is overseen by China's State-owned Assets Supervision and Administration Commission and remains a major instrument of national infrastructure policy. It is widely described as the world's largest utility by revenue and one of the largest companies globally. Public descriptions of its scale have cited approximately 1.3 million employees and more than one billion customers in the early 2020s, although such figures and financial measures vary by reporting year and definition. Its present role combines commercial utility operations with strategic responsibilities for energy security, regional development, renewable-energy integration, and national grid modernization.
History
China began reforming its electricity sector in 1986, with the eventual objective of separating power generation from transmission and introducing more distinct institutional responsibilities. The final stage of the reform took effect in March 2002, when the State Council approved a restructuring of the former State Power Corporation of China. Generation assets were distributed among five large generation groups, while transmission and distribution functions were assigned to two grid companies: State Grid Corporation of China and China Southern Power Grid Company. State Grid was formally founded on 29 December 2002 and headquartered in Beijing. At creation, it inherited responsibility for approximately four-fifths of China's electricity grid, with China Southern Power Grid receiving the remainder. The new company entered a period characterized by rapid demand growth, industrial expansion, and power shortages. Rolling blackouts occurred in the early 2000s, and State Grid reported substantial economic losses associated with supply constraints between 2002 and 2005. The company subsequently concentrated on strengthening the national transmission backbone. It developed long-distance corridors intended to connect hydropower and other generation resources in western and northern China with demand centers in the east. In January 2009, State Grid placed into operation the first 1,000-kilovolt alternating-current line in China, linking northern Shanxi with central Hubei. In 2012, it began operating an 800-kilovolt direct-current project transporting hydropower from Sichuan toward Shanghai. It also developed major alternating-current links around the Yangtze River Delta and north-to-south transmission routes. From 2011, State Grid progressively transferred certain operating assets from regional grid companies to provincial-level network companies. During the same period, it participated in a national smart-grid program planned for 2011–2015. Unlike many smart-grid programs focused primarily on local distribution automation, China's approach placed strong emphasis on ultra-high-voltage transmission. Multiple UHV projects were initiated from 2012 onward, including corridors involving Huainan, Wannan, Shanghai, Inner Mongolia, Weifang, Shanxi, Xuzhou, Ya'an, and southern Anhui. In 2013, State Grid established a board of directors at its holding-company level and Liu Zhenya became chairman while continuing as Party Secretary. Liu promoted a strategy described as “one special, four large”: ultra-high-voltage grids as the special priority, supported by large-scale hydropower, coal power, nuclear power, and renewable-energy development. The company expanded research and organizational capacity around UHV engineering and grid construction. State Grid also expanded beyond China. Liu established State Grid International Development in 2008, and the subsidiary was placed directly under the holding company in 2012. Overseas activity included concessions, minority stakes, acquisitions, engineering projects, and technical partnerships. In the Philippines, a consortium involving State Grid won the 2007 auction for a 25-year transmission concession; the resulting National Grid Corporation of the Philippines assumed operations in 2009. In Portugal, Australia, Brazil, Italy, Greece, Chile, and other markets, State Grid acquired or developed stakes in electricity transmission, distribution, and related infrastructure. The company promoted Global Energy Interconnection from 2015 as a long-term vision for connecting national grids through smart-grid and UHV technologies. The proposal was discussed in international and United Nations-related forums and aligned with Chinese policy interest in cross-border energy infrastructure. After Liu's retirement, Shu Yinbiao became chairman and Party Secretary in 2016. He continued the UHV-centered approach while emphasizing “re-electrification,” a strategy intended to substitute electricity from cleaner sources for direct coal and petroleum use in appropriate sectors. State Grid remains a central state-owned enterprise supervised by China's State-owned Assets Supervision and Administration Commission. It operates almost all of China's national transmission and distribution network outside the southern regional system and continues to combine domestic grid stewardship, infrastructure investment, engineering research, overseas holdings, and national energy-policy implementation. Public accounts have described it as the world's largest utility and one of the largest companies by revenue, although reported scale varies according to the year and accounting basis.
- 2020
Chilean electricity assets are expanded
[1]State Grid completes the acquisition of Chilquinta Energía and Tecnored and announces an agreement involving CGE.
- 2017
Control of CPFL Energia is acquired
[1]State Grid expands its Brazilian presence by acquiring control of CPFL Energia.
- 2016
Shu Yinbiao becomes chairman
[1]Shu Yinbiao succeeds Liu Zhenya and continues the company's emphasis on UHV networks while promoting re-electrification.
- 2015
Global Energy Interconnection is proposed
[1]State Grid presents a long-term vision for globally interconnected smart grids and UHV transmission networks.
- 2013
Board structure and UHV strategy are strengthened
[1]State Grid establishes a board of directors at holding-company level, while Liu Zhenya advances the “one special, four large” development strategy.
- 2012
Sichuan–Shanghai UHV DC project begins operation
[1]An 800-kilovolt direct-current line begins transporting hydropower from western Sichuan toward Shanghai.
- 2009
First Chinese 1,000-kilovolt AC line enters operation
[1]State Grid commissions a UHV alternating-current line between northern Shanxi and central Hubei.
- 2008
International development subsidiary is established
[1]State Grid creates State Grid International Development to coordinate overseas investments and partnerships.
- 2007
Philippine transmission concession is awarded
[1]A consortium including State Grid wins the auction for a 25-year concession to manage the Philippine transmission system.
- 2002
State Grid is founded
[1]The company is created on 29 December 2002 after China separates generation from transmission and restructures the former State Power Corporation of China.
Products and positioning
A strategically important national grid operator, infrastructure investor, and global electricity-network enterprise.
Utility service · 2002
Electricity transmission and distribution
State Grid's principal service is the transmission and distribution of electricity across most of mainland China. The business includes high-voltage and ultra-high-voltage transmission, regional and provincial network operation, dispatch, maintenance, connection of generation assets, and supply to residential, commercial, and industrial customers. The company also performs infrastructure planning and investment as part of its responsibility for national energy security and grid reliability.
Grid technology · 2009
Ultra-high-voltage transmission
State Grid has made ultra-high-voltage AC and DC transmission a central technical capability. UHV projects move large volumes of electricity over long distances, particularly from western and northern generation bases to eastern and central demand centers. The technology is used for hydropower, renewable electricity, and other large generation resources and is supported by dedicated engineering, research, and construction organizations.
Digital infrastructure · 2011
Smart-grid systems
State Grid's smart-grid activities combine digital monitoring, automated control, advanced metering, network management, and long-distance transmission. Its approach places unusual emphasis on integrating national and regional grids through UHV infrastructure, while also improving distribution reliability and supporting variable renewable-energy resources.
Overseas utility operations · 2007
International electricity infrastructure
Through overseas subsidiaries and investments, State Grid participates in electricity transmission, distribution, generation-related infrastructure, engineering, and grid modernization outside China. Its international portfolio has included concessions and ownership interests in the Philippines, Brazil, Portugal, Australia, Italy, Greece, Chile, Oman, and other markets.
Controversies
2026
Former senior executive Kou Wei sentenced to death with reprieve in first instance for bribery, embezzlement and other charges
On April 1, 2026, the Xing'an League Intermediate People's Court, in the first instance, imposed combined punishment on Kou Wei for bribery, bribery by exerting influence, embezzlement, and abuse of power by personnel of a state-owned company, deciding to execute a death sentence with a two-year reprieve. The relevant acts span his tenures at Huaneng, State Grid, Datang, etc.; the embezzlement and other facts involve Lancang River Hydropower, and the various crimes and full amounts cannot be attributed to each group.
2014
Shanghai electric-power executive investigated for corruption
Feng Jun, general manager of State Grid Shanghai Municipal Electric Power, was detained in an anti-corruption operation overseen by China's Central Commission for Discipline Inspection. Reference material states that his assets were later seized and that he was sentenced to life imprisonment.
Marketing campaigns
- 2015Global Energy Interconnection
China · International
State Grid promoted a long-range energy-infrastructure vision based on interconnecting national and regional electricity systems with smart-grid controls and ultra-high-voltage transmission. The concept was presented as a way to connect renewable-energy resources with demand centers across borders.
Outcome. The proposal became an international policy and industry discussion topic and was promoted through international forums.
- 2011National smart-grid development program
China
State Grid participated in China's 2011–2015 smart-grid initiative, emphasizing digital network management, advanced transmission, and UHV links between generation regions and demand centers.
Outcome. The program supported a broad wave of grid automation and UHV construction projects.
Brand decisions
2016
Emphasize re-electrificationStrategyBackground
Following the leadership transition from Liu Zhenya to Shu Yinbiao, State Grid continued its UHV focus while responding to the need to reduce direct use of coal and petroleum.
Action taken
The company promoted re-electrification, seeking to substitute electricity generated from renewable sources for fossil-fuel use in suitable applications.
Aftermath
The concept linked grid expansion and electrification with China's broader clean-energy and emissions-reduction objectives.
2015
Promote Global Energy InterconnectionStrategyBackground
State Grid argued that wider interconnection could improve the use of renewable resources and link distant generation with consumption centers.
Action taken
The company proposed a global network of smart grids and UHV transmission lines connecting more than 80 countries over the long term.
Aftermath
The proposal received attention in international energy and policy forums but remained a long-term infrastructure vision rather than a single completed project.
2013
Adopt the “one special, four large” strategyStrategyBackground
State Grid sought to match China's geographically dispersed generation resources with fast-growing electricity demand while strengthening its technological specialization.
Action taken
Liu Zhenya prioritized ultra-high-voltage grids together with large-scale hydropower, coal power, nuclear power, and renewable-energy development.
Aftermath
UHV research, engineering organizations, and long-distance transmission construction became defining elements of State Grid's domestic strategy.
2007
Enter the Philippine transmission concessionM&ABackground
The Philippine government auctioned a long-term private concession for management of the national transmission system.
Action taken
A consortium including State Grid won the auction and subsequently formed the National Grid Corporation of the Philippines.
Aftermath
NGCP took over operation, maintenance, management, construction, and expansion responsibilities in January 2009 under a 25-year concession with a possible renewal period.
Auction offer. US$3.95 billion offer (2007)
2002
Separate electricity generation from grid operationsStrategyBackground
China's electricity-sector restructuring sought to introduce clearer institutional separation and greater competition by dividing generation assets from transmission and distribution networks.
Action taken
The former State Power Corporation of China was divided into State Grid, China Southern Power Grid, five generation groups, and ancillary companies.
Aftermath
State Grid became the principal grid operator for most of mainland China.
Recent events
- 2024
State Grid announces an international brand-building and world-class-enterprise program[4]
Campaign
The company described efforts to strengthen a unified brand architecture, promote ultra-high-voltage and green-supply-chain sub-brands, improve brand governance and connect brand development with its broader strategy.
- 2024
State Grid and China Southern Power Grid sign cooperation for a Guangdong–Tibet electricity project[5]
Other
The two national grid companies signed an investment-cooperation agreement concerning a joint electricity-operation company, illustrating coordination on major interregional transmission infrastructure.
- 2020
State Grid completes acquisition of Chilean electricity distributor Chilquinta Energía[1]
M&A
State Grid completed the acquisition of Chilquinta Energía and related engineering company Tecnored from Sempra Energy.
- 2020
State Grid agrees to acquire a controlling position in CGE[1]
M&A
State Grid announced an agreement to acquire Chilean electricity distributor Compañía General de Electricidad, extending its Latin American electricity-distribution portfolio.
- 2017
State Grid acquires control of CPFL Energia[1]
M&A
State Grid acquired control of Brazilian electricity company CPFL Energia, expanding its position in Brazil's power-generation and distribution market.
- 2015
State Grid launches Global Energy Interconnection proposal[1]
Campaign
The company proposed a long-term framework linking power systems across countries through smart grids and ultra-high-voltage transmission networks.
- 2009
State Grid begins operation of China's first 1,000-kilovolt AC line[1]
Product launch · Product generation
The company commissioned an ultra-high-voltage alternating-current line linking northern Shanxi with central Hubei, marking a major technical milestone for long-distance transmission in China.
- 2008
State Grid establishes an international-investment platform[1]
Other
State Grid International Development was created to coordinate the company's overseas electricity-infrastructure investments and partnerships.
- 2007
State Grid consortium wins Philippine transmission concession[1]
M&A
A consortium including State Grid won the auction for a 25-year concession to operate the Philippine transmission system. The resulting National Grid Corporation of the Philippines began operating the system in 2009.
- 2002
State Grid is created during China's electricity-sector restructuring[1]
Other
China established State Grid after separating generation assets from transmission and distribution functions. The restructuring also created China Southern Power Grid and several major generation groups.
Sources9 sources
- 1State Grid Corporation of China - Wikipediaen.wikipedia.org
- 2State Grid Corporation of China official websitesgcc.com.cn
- 3Former senior executive Kou Wei sentenced to death with reprieve in first instance for bribery, embezzlement and other chargescourt.gov.cn
- 4国家电网发布国际品牌建设与世界一流企业创建方案sasac.gov.cn
- 5国家电网与南方电网就广东—西藏电力项目签署合作zh.wikipedia.org
- 6国家电网收购智利第三大配电企业100％股权 国际化、泛在电力物联网双轮驱动finance.sina.com.cn
- 7国网收购阿曼国家电网49%股权 耗资70亿元finance.sina.com.cn
- 8China's grid corporation acquires 49 pct shares of Oman's electricity companyecns.cn
- 9SGCC acquires 49% shares of Oman's electricity companychina.org.cn
Cite this profile: Cite the canonical profile. /brand-wiki/state-grid-corporation-of-china · Editorial policy · How profiles are compiled