GE helps address China’s energy needs

GE and SGCC will form several joint ventures to address China’s growing energy needs. It also seeks to electrify China’s vast transportation infrastructure. These joint ventures, part of GE’s plans to invest US$2B in China through 2012, will play a vital role in supporting the country’s energy demand through the development of a smarter grid that will help achieve environmental and economical goals.

“China is one of the world’s fastest growing areas with a tremendous need for infrastructure,” said Dan Heintzelman, president and CEO, GE Energy Services. “Since opening our first light-bulb factory in China over one hundred years ago, GE has been committed to providing cleaner, smarter and more efficient solutions and these joint ventures are the latest step in this commitment.”

“Currently, China is experiencing one of the largest rural to urban migrations in history and is expected to become a predominantly urban society by 2020, when urbanization rates reach at least 50 percent₁,“ said Heintzelman. “This shift means significant changes to the electric distribution needs for a country boasting one of the world’s largest populations. Doing this in a sustainable manner will be a challenge we will help provide solutions for,” Heintzelman promised.

To tackle the country’s pressing energy needs and overcome challenges related to grid infrastructure, GE has signed two joint venture agreements with State Grid Corporation of China or SGCC. GE will work with Wuhan Nari, a subsidiary of SGCC, to improve the efficiency and reliability of China’s electric grid by developing and implementing asset optimization technology solutions. GE will also work with Electric Power of Shanghai, controlled by SGCC, to jointly acquire a 77.5 percent controlling stake in Shanghai Tianling Switchgear Co., a Shanghai-based company developing and selling green power distribution equipment. This acquisition by GE and Shanghai Grid will reposition Tianling competitively in US$10 billion global medium-voltage switchgear industry. The formation and operation of joint ventures are subject to certain conditions, including applicable governmental approvals.

The joint venture between GE and Wuhan Nari will focus on improving grid efficiency and reliability with asset optimization solutions. The venture marks China’s dedication to modernizing electrical infrastructure, which will help meet aggressive renewable energy targets by delivering a smarter, more automated network that will enable the integration of more clean, domestic energy.

“With energy demand expected to double over the next 10 years, China is focused on building a smarter electric grid to meet demand with less environmental impact₂,” said Bob Gilligan, vice president, GE’s Digital Energy business. “GE has been collaborating on technology and delivery with organizations around the globe to realize the promise of a smarter grid. This joint venture with Wuhan Nari expands GE’s role in developing a smarter, more reliable and sustainable infrastructure for Chinese consumers. GE’s energy business is dedicated to modernizing the world’s electrical systems, providing the expertise and solutions to meet global energy challenges.”

 “To support current energy needs and future growth, China is rapidly expanding its use of renewable energy sources, which rely heavily on smart grid technologies to optimize their effectiveness,” said Hai-An Zhu, general manager for GE’s Digital Energy business in China. “These solutions will provide the region with a new supply of additional power, helping minimize the need for large investment in transmission networks while improving reliability and reducing pollution.”