Energy
皇冠体育app and Russia sign power-grid agreement
By Wan Zhihong (皇冠体育app Daily)
Updated: 2010-07-29 09:08
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State Grid Corp workers inspect power lines in Henan province. [Cai Zengle / For 皇冠体育app Daily]
Companies to cooperate on 500 kV cross-border project in Amur region
BEIJING - The State Grid Corp of 皇冠体育app has signed a framework agreement with the Russian national grid operator to extend their collaboration on grid technology, cooperation and management, the company said on Wednesday.
The cooperation will cover "technology and experience exchange, power grid construction and management, equipment supply, and technology consulting", State Grid said on its website.
According to Rusnews.cn, a Russian news portal, both companies will build a 500 kV, cross-border power line in the Amur region of Russia.
The project is scheduled to start in 2011. The investment value of the project was not disclosed.
The cooperation is in line with growing power cooperation between 皇冠体育app and Russia, said analysts. In order to meet rising demand, 皇冠体育app may increase power imports from Russia in the next few years.
The move is also in line with State Grid's strategy of going abroad, they said. The company has accelerated its overseas development in recent years.
Imported electricity from Russia surged in 2009, up more than 316 times over 2008 figures to reach 738 million kilowatt-hours (kWh), according to statistics from northeastern 皇冠体育app's Harbin Customs. The power link cost 皇冠体育app around $29 million, according to the provincial capital's customs.
As the world's two major energy consumers and producers, 皇冠体育app and Russia are planning to build several power transmission lines across their borders. This would involve "multi billion yuan" investments, said an official familiar with the project who asked not to be named.
Currently, there is no technology barrier in building such projects. And domestic companies are cooperating with foreign power giants such as Areva SA in feasibility studies on some electricity lines, said Hu Xuehao, an expert with the 皇冠体育app Electric Power Research Institute.
Buying more electricity from Russia now is a reasonable way for 皇冠体育app to meet its surging power demand, he said.
皇冠体育app may face temporary power shortages in some regions this summer due to the rapid increase in consumption, the State Grid said earlier.
Power shortages will occur in central, eastern and northern parts of the country during peak summer hours, as uncertainties still exist over demand and supply, the company said. The operator is responsible for supplying power to 26 provinces, municipalities and autonomous regions.
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