The State Grid Corp of China, the country's largest power grid construction and operation company, is to strengthen its capacity to transmit electricity across different grids, in an attempt to ease this year's power shortages.

Although some parts of the nation are expected to see power shortages alleviated, the country as a whole will continue to suffer from tight power supplies, according to company sources.

The gap between supply and demand is expected to reach more than 20,000 megawatts during the power consumption peaks in the summer, official sources said.

The company plans to transmit 70 billion kilowatt hours across sub-tier grids in different regions this year, up 7.6 percent year-on-year.

The company's profits for 2005 are expected to hit 11.5 billion yuan (US$1.4 billion), up 18.5 percent from 9.7 billion (US$1.2 billion) in 2004.

The grid company will invest 107 billion yuan (US$12.9 billion) this year into the upgrading and construction of the nationwide power grid.

It will focus its efforts on building a national power grid, by strengthening connections between power grids in different regions and provinces.

State Grid Corp of China President Liu Zhenya unveiled the plan at the company's annual conference over the weekend.

The move aims to facilitate power transmission across the sub-tier power grids, to improve efficiency and relieve the power shortfalls, said Liu.

The country's power grid giant plans to build an ultra high voltage grid as an essential part of the national power grid.

"The construction of the ultra high voltage grid is the most pressing task for the company," said Liu.

The national power grid will greatly improve the country's power supply capacity, and assist industrial upgrading and technical innovation, experts say.

The company is expected to take other steps this year to extend its power supply capacity.

For example, it plans to complete the power transmission project connecting central and northwestern China within the year, and will start a host of other projects in different regions, company sources said.

Along with its efforts in power grid construction, the country's biggest power gird conglomerate attaches great importance to enhancing its technical strength, in order to guarantee power supplies and safeguard grid security.

A shake up is expected at every level of the company later this year to improve its performance.

Power transmission from areas with sufficient supplies to areas with shortages played an important role in relieving the country's power shortfalls in 2004.

The company transmitted 179.8 billion kilowatt hours of electricity in 2004 across different regions and provinces, up 30.1 percent year-on-year.

(China Daily January 25, 2004)