UPDATE 1-China grid operator to spend $14.6 bln on UHV lines

Published: 16 Jan 2009 01:53:06 PST

BEIJING, Jan 16 - The State Grid Corp of China, the country's leading grid operator, plans to step up expansion of its ultra-high voltage (UHV) power transmission networks after a pilot project was brought on line recently.

The state-owned grid giant intends to invest about 100 billion yuan ($14.63 billion) in the next three or four years for more UHV lines, executive vice president Shu Yinbiao said on Friday.

"But the plans need to be approved by the National Development and Reform Commission," Shu said in a media briefing.

Last week, the State Grid started the commercial operation of the 640-kilometre Jingdongnan-Jingmen line, the country's first ultra-high voltage route that has capacity to transmit up to 2.8 gigawatts of electricity.

The 1,000 kilovolt alternate current line runs from northern Shanxi province, China's top coal producer, to central Hubei that normally needs power from coal-fired plants to make up the supply shortfalls beyond the output from its own hydropower plants.

The State Grid is also constructing two UHV direct current lines, each more than 2,000 km long, from hydro-power-rich southwestern China to fast-growing coastal regions in eastern China, at a cost of 40 billion yuan.

Shu did not say how the company would fund the two lines under construction or which new routes are considered in the 100 billion investment plan.

A company official said at least some of the new spending would increase the number of UHV lines from the southwest to the east.

UHV lines allows for heavy flows of electricity with significantly lower loss in transmission, suitable for countries with vast land masses but uneven resource distribution.

Nearly 80 percent of China's water resources are in the southwest, and two thirds of coal is in three northern provinces, whereas demand centres are in the coastal regions.

China's railway system is burdened by hefty loads of coal shipments each year, as the world's second largest power market relies on coal-fired power plants for four fifths of electricity supplies.

Still, some industry officials question the wisdom of expanding UHV power networks on other concerns including pollution, technology and economic viability, supply security and competition.

"With the successful startup of the new UHV line, many concerns should be appeased," Shu said. ($1=6.836 Yuan)