China's "whole industrial chain" is aligned with ASEAN's power demand

2022-11-22

In recent years, China's power industry, which has the world's leading level, is developing towards ASEAN countries along the Belt and Road, forming a strong quality effect and brand effect. It has become the consensus of senior officials and power professionals in free trade zones of the Eastern European Union (ASEAN) to build a full-industrial chain cooperation model so that China's powerful power industry can exert a radiating effect on ASEAN countries along the Belt and Road.


Power cooperation between China and ASEAN countries was launched


The production capacity and product quality of the 1.3 million kw supercritical thermal power generating units, 770,000 kW hydroturbine generating units, 300,000 kW pumped storage units, AC1000 kV transformers and DC800 kV flat-wave reactors were listed by power experts in an interview with reporters. They said that China's power industry technology has taken a leading position in the world.


Electric power is an important driving force and strong support for economic development toward the sea. Since the establishment of Guangxi Beibu Gulf Economic Zone, the core region of China-Asean Free Trade area, China Southern Power Grid Guangxi Company has proactively planned the construction and development of Guangxi Beibu Gulf power grid, increased investment for many years in a row, committed to weave a Guangxi Beibu Gulf large and strong power grid extending from major arteries to capillaries, providing a strong power guarantee for the accelerated development of Guangxi Beibu Gulf Economic Zone. In 2016, five new substations of 110 kV or above were built in the Beibu Gulf region of Guangxi, with an additional capacity of 900,000 kV or above and a line length of 301 kilometers.


Today, this region has become a frequent mention in the China-Asean Expo Electric Power Cooperation and Development Forum. Many delegates have visited the area. It was after having a deep understanding of the capabilities of Chinese power enterprises in successive forums that Nguyen Chin Phong, Vice Chairman of Vietnam New Energy Association, urged the introduction of Chinese power enterprises' technologies in China.


Strong Chinese power investment capacity and potential ASEAN power demand form a positive interaction. Statistics from the China Electricity Council show that in 2016, China's major power enterprises actually completed overseas investment of 7.785 billion US dollars, up 168% year on year; There were 65 overseas investment projects, 37 of which cost more than 30 million US dollars, covering hydropower, thermal power, nuclear power, wind power, power transmission and transformation. By the end of 2016, China's major power companies had invested more than $39 billion overseas. In the same year, China's major power enterprises exported $3.9 billion worth of equipment and technology, and signed new contracts for overseas projects worth $48.8 billion. There are currently 1,691 projects under construction with a total contract value of $161 billion.


China and ASEAN countries have achieved remarkable results in power cooperation. In 2016, China's major power enterprises actually invested US $1.48 billion in 10 ASEAN countries (projects worth US $30 million or more), and signed new contracts worth US $2.4 billion for projects worth US $30 million or more.


In October 2016, China Southern Power Grid Corporation and the Royal Group of Cambodia signed a memorandum of understanding on power grid investment cooperation in Cambodia. The State Grid Corporation of China (SGRC) has started work on a 230 kilovolt power transmission and transformation project in Laos, and the procurement of 230 kilovolt power transmission projects in Northern Kachin State and the backbone network in Myanmar is progressing in an orderly manner. In May 2017, Xuji Group acquired 47.48% equity of Vietnam North Electric Equipment Manufacturing Co., LTD., becoming the largest shareholder.


In November 2015, China Southern Power Grid International Co., Ltd. and the Lao State Power Company jointly invested in the construction of the 168,000 kW Nantahe 1 hydropower Station in Lao Laos. When it is put into operation in April 2018, it will greatly improve the power grid structure in northern Laos and provide electricity for the local and northern Thailand and the border areas between Myanmar and Laos.


Not long ago, China Southern Power Grid Co., Ltd. authorized China Southern Power Grid Yunnan International Co., Ltd. to jointly sign the Memorandum of Understanding on China's UHV Power Transmission Project to Vietnam via Laos with the Lao National Power Company, Laos Pensatarui Group and Vietnam's Hanoi-Vientiane Power Company in Kunming. The three countries and the four parties have reached a preliminary agreement to supply 5 million to 6 million kilowatts of electricity to Vietnam via Laos from 2021 to 2025. This is China's first cross-border power grid connectivity project in a third country, marking substantial progress in the power grid connectivity between China, Laos and Vietnam.


Chen Xiongzhang, vice president of Nanning University, believes that the implementation of major projects by Chinese power enterprises in ASEAN has made ASEAN countries have a clear understanding of the comprehensive strength of Chinese power enterprises, especially in the fields of coal power, hydropower, wind power, grid construction and renovation, and electric power equipment manufacturing. Investment methods include general project contracting, build-operate-transfer, build-own-operate-transfer, preferential export buyer's credit, seller's credit, etc., which can bring win-win opportunities for ASEAN countries that are short of capital injection and in urgent need of energy construction.


China's power supply meets ASEAN's power demand


Xu Xiaodong, an expert who has been studying China-Asean Free Trade area for years and an expert of the Institute of Silk Road of Guangxi Normal University, believes that Chinese power enterprises are forming a good situation of connecting the whole industrial chain to the power demand of ASEAN through the layout of the Belt and Road, which is mainly reflected in the following aspects:


Under the Belt and Road Initiative, the ASEAN-China strategic partnership keeps growing, the bilateral economic and trade interaction keeps deepening, and there is a sound environment for deepening electricity cooperation. Trade liberalization and investment facilitation have reduced cooperation barriers and cost, creating a favorable external environment for expanding power cooperation.


During the implementation of the Belt and Road Initiative, the strong production capacity, project construction capacity, financial support capacity and resource integration capacity of China's power industry complement the power development needs and resource endowment of ASEAN countries, so as to achieve win-win cooperation.


The economic development of ASEAN countries has maintained a good trend, and there is a continuous strong demand for electricity, which has not been fully satisfied at present. The region is rich in coal, water and solar energy resources, and has a good foundation for vigorously developing the power industry. China's electric power industry has formed a complete industrial chain of planning and design, equipment manufacturing, engineering construction, operation and maintenance, and is capable of designing and manufacturing complete sets of large-scale electric power equipment. China leads the world in ultra-high voltage, smart grid, turbine manufacturing and hydropower engineering technology. The manufacturing capacity of wind power and photovoltaic power generation equipment ranks first in the world. Hualong One, a third-generation nuclear power technology with fully independent intellectual property rights, has also gone abroad. It can be said that there is a solid foundation for strengthening China-Asean power cooperation.


During the implementation of the Belt and Road Initiative, the management capacity and service level of China's electric power industry is leading in the world, which is being recognized, understood and recognized by the countries along the Belt and Road. Through the layout of the powerful Chinese electric power industry, a virtuous circle of promoting Chinese technology to serve ASEAN countries is realized.


The development of the park, electric power first. With the rapid development of China-Malaysia Qinzhou Industrial Park, higher requirements are put forward for power supply services. The participants of the China-Asean Electric Power Cooperation and Development Forum found that, from the initial installation of 10 kV temporary lines to meet the demand of the park's construction, to the special planning of the park's power, the Qinzhou Power Supply Bureau has solved a series of problems in the park's power grid planning and construction, line relocation and project construction by means of stationing in 2015.


Hrudewanto, secretary-general of the Electric Power Association of Indonesia, said: China's power management model and efficiency are worth our efforts to introduce.



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