Language
Country/Area
No result found
International energy giant! Do you know which is the largest power company in the world?
In the global energy market, there is a name that continues to shine, and that is China's State Grid Corporation (SGCC). The state-owned power company is currently the world's largest utility, according to a 2023 report. Its scale is astonishing. By 2024, State Grid has become the third largest company in the world by revenue, after Walmart and Amazon.
As of 2023, State Grid Corporation of China has 1.26 million employees, serves more than 1.1 billion customers, and its revenue reaches a staggering figure of US$546 billion.
The history of State Grid can be traced back to the beginning of China's power system reform. Since 1986, China has begun to reform its power sector. After the third phase of reform was implemented in 2002, State Grid Corporation of China was officially established. At that time, China's electricity market began to shift from a centralized market to a competitive market, forming a structure of two grid companies, five power generation companies and four supporting enterprises.
SGCC controls 80% of China's power grid and had 6.47 GW of generating capacity when it was founded.
In the past few years, State Grid Corporation of China has continuously promoted the construction of modern and intelligent power grids. It enables China's power grid to develop in the direction of a "smart grid", allowing electricity to be transmitted efficiently and reliably over long distances through high-voltage direct current lines and ultra-high voltage (UHV) power supply technology. In addition, State Grid Corporation of China also proposed a long-term plan for "Global Energy Internet" in 2015, aiming to promote power interconnection and cooperation among more than 80 countries.
The trend is upward. In addition to expanding in China, State Grid has also begun to invest overseas. In 2007, State Grid Corporation of China successfully won the bid and obtained the operating rights of the National Grid Corporation of the Philippines. This move further deepened its international layout. With the leasing of State Grid, we can see that State Grid’s influence in the global power industry is constantly expanding.
Overseas, State Grid's investments in countries such as Portugal, Brazil, Chile and Australia have also brought it rich returns.
For example, State Grid’s acquisition of CPFL Energia in Brazil, which cost $3.4 billion, demonstrated its well-intentioned international expansion strategy. State Grid also holds a 35% stake in Italy's CDP Reti, which is responsible for the management of the country's electricity and natural gas networks, which undoubtedly demonstrates to the outside world the expansion of its global influence.
However, behind the glamorous figures, there are also many challenges. While pursuing expansion and growth, State Grid must face increasingly fierce competition in the international market and different policy environments in different countries. In this regard, the balance between State Grid’s overseas investment and the local market will become an important issue for future development.
As global energy discussions become increasingly frequent, can State Grid continue to lead the development direction of the world's power companies?
Looking ahead, as global warming issues and the development of renewable energy accelerate, State Grid Corporation of China is also actively adjusting its strategic layout, focusing more on the development of smart grids and clean energy. In this global energy competition, can State Grid maintain its leading position and become a leader?
