On the issue of grid ownership, the differences between the United States and China are a profound reflection of the fundamental differences in energy management and policymaking between the two countries. The U.S. power grid is mostly operated by private companies, while China's power grid is largely controlled by the state. Behind the choice of these two models are different considerations for the safety and efficiency of the power system, as well as the national strategic goals.
The development and application of UHV transmission technology is an important criterion to measure the scientific and technological level of a national power grid. Historically, major countries such as the Soviet Union and the United States have tried to break through the limitations of UHV transmission technology, but they have not been able to apply it on a large scale due to high costs and technical difficulties. In contrast, China has made significant progress in the field of ultra-high voltage transmission. Since 2004, China has successfully developed new insulating materials by gathering the wisdom and resources of universities and scientific research institutions, and investing huge manpower and material resources, which has made breakthroughs in UHV transmission technology and realized the world's longest UHVDC transmission line, which marks China's leading position in the field of global power transmission technology.
China's ability to achieve such great achievements in ultra-high voltage transmission technology is inseparable from the state control of its power grid. Unified planning and investment at the national level have enabled the implementation of major projects such as west-to-east power transmission, demonstrating the unique advantages of state-owned power grids in mobilizing resources and realizing large-scale cross-regional power transmission projects. In the U.S., the privatization of the grid has led to the fragmentation of grid operations among multiple stakeholders, and while this model has some advantages in promoting market competition and improving service efficiency, it may lack sufficient concentration and coordination in the face of national-level projects that require large-scale coordination and investment.
In the case of Texas, for example, the region's power grid is privately operated, making it challenging to respond to disasters and coordinate across regions. This difference illustrates the importance of grid ownership and operation models for national energy security, economic development and even foreign economic cooperation strategies, and also reflects the fact that in the context of globalization, different countries choose the most suitable energy management path according to their own conditions and strategic needs.
In 2021, Texas experienced an unprecedented winter low temperature, with temperatures plummeting to minus 18 degrees Celsius. This extreme weather caused the state to suffer a massive power system failure, leaving about four million residents without access to heating and hot water facilities in the cold.
The root cause of this incident is that Texas' energy** is overly reliant on thermal power, which accounts for 80% of total electricity generation. Persistent cold weather and aging equipment overloaded the power generation system, which eventually led to the collapse of the system. Texas Power Grid's independent operation model, while it brings pride to local residents in normal times, has exposed its vulnerability to extreme weather events during the crisis.
By comparing the operating models of private and state-owned power grids, we can see the advantages and disadvantages of each. In the state-owned mode, the unified dispatching and management of the power grid can respond quickly in an emergency and concentrate resources to solve the problem. In the face of similar disasters, private grid systems may lack sufficient coordination and resource concentration to respond effectively.
The naming of China's power grid reflects the international vision of the State Grid Corporation. Although the grid control center is located in China, its service scope has expanded to many countries and regions around the world, including but not limited to Italy, Greece, the Philippines, Brazil, etc. This cross-border power grid cooperation not only reflects the internationalization strategy of Chinese enterprises, but also demonstrates China's leadership in global power grid construction and management.
As of 2023, the State Grid Corporation of China has participated in the construction and operation of power networks in 11 countries and regions around the world, promoting the application of Chinese-style power grid standards in more than 100 countries and regions around the world. This not only promotes the international dissemination of China's power grid technology and management experience, but also contributes to global energy security and sustainable development. This model of transnational cooperation demonstrates the responsibility and responsibility of China Power Grid Corporation as a global energy company, and also strengthens China's voice in global energy governance.
Under the shock wave of the global economic crisis in 2008, many countries faced the severe challenge of fiscal deficits and had to consider state-owned assets to avoid an even worse economic collapse. It is in this context that State Grid seized the opportunity to go abroad and began its global expansion journey. Between 2010 and 2016, State Grid rapidly emerged as one of the world's largest utilities by increasing or leading its holdings in transmission companies in Brazil, South Australia, Portugal, Italy and Belgium.
The global layout of the State Grid is not a simple capital operation, but during the global economic downturn, through cooperation with distressed countries to help them tide over difficulties, this behavior goes beyond commercial interests, reflects the international image and demeanor of a responsible major country. This is not only a kind of business investment, but also a kind of "gentlemen's cooperation" of international mutual assistance, showing the global vision and responsibility of the State Grid.
With the continuous progress of technology, especially the breakthrough of UHV transmission technology, the international cooperation of the State Grid has entered a new stage. This technological advantage enables State Grid to implement more ambitious and complex power grid construction projects on a global scale, opening up the idea of a global energy interconnection from the equator to the polar regions.
The State Grid's global asset layout covers many key nodes around the world, and most of these cooperation areas are located in the strategic location of "one pole and one belt", which not only demonstrates the global layout strategy of State Grid, but also indicates the ambition of building an interconnected, safe and efficient global energy network. This goal aims to promote the global energy transition through efficient energy distribution and utilization, and contribute Chinese wisdom and solutions to achieve sustainable development.
After in-depth research by survey experts, the Arctic region has been found to have the potential of about 100 billion watts of wind energy resources, which accounts for nearly one-fifth of the world's total onshore wind energy resources. The huge potential of solar energy resources is mainly distributed in equatorial regions such as North Africa and the Middle East, which account for about 30% of the global solar development potential. In addition to this, the tropical zone around the equator is also rich in other types of clean energy, such as wind and hydropower.
Under the guidance of the "One Pole, One Belt" strategic plan, State Grid is gradually expanding its cooperation in clean energy development in the Arctic and equatorial regions. Through these collaborations, wind power resources aimed at concentrated development in the Arctic region will be able to be transported south to East Asia, South America and Europe, creating a global energy transmission network. At the same time, solar development in the equatorial region will also support clean energy demand in Asia and North America.
February** Dynamic Incentive Program
February** Dynamic Incentive Program
This series of actions indicates that the idea of global energy interconnection is gradually becoming a reality. In particular, the core technology of all this, ultra-high voltage transmission technology, is provided by the State Grid of China, which ensures the technical safety and reliability of the project. This not only eliminates the risk of possible technological dependence, but also strengthens China's leadership in the global energy sector.
Through close cooperation with international friendly countries, we have developed and utilized wind and solar energy resources in the polar and equatorial regions, and used China's core technology to deliver clean energy to load centers on all continents around the world, demonstrating a new model of international cooperation with win-win and mutual trust. This process not only promotes the transformation of the global energy structure, but also contributes China's wisdom and solutions to the realization of the global sustainable development goals.