Sino-Russian deal possible

China may build power stations for cross-border transmission

BEIJING - The State Grid is considering investing in power stations in border areas to facilitate power transmission from Russia to China, in collaboration with Russian companies, an industry insider said.

A senior State Grid official who wished to remain anonymous didn't confirm that statement, but he said that there is a possibility of China and Russia building power stations together, which would benefit the economic development of both countries.

"The cooperation in the energy sector between China and Russia will lead to a win-win situation," he said.

The power market between China and Russia has great potential provided that power from Russia costs about the same as domestic power, he said.

China and Russia have a long history of energy cooperation. Some Chinese companies have engaged in the profitable business of importing natural gas from Russia.

Some industry analysts said the power transmission would be even more profitable.

In late may, the State Grid restarted construction on a converter station in Heihe, Heilongjiang province in Northeast China, after the project was suspended in August 2008.

The project, which started in 2007, was aimed at providing an electricity transmission line from Russia to China.

According to another senior official of State Grid, who also wished to remain anonymous, the project was suspended because the two countries could not reach an agreement on the price of the electricity.

The official said the converter station will go into operation by the end of the year and will have its first operations test in August.

A manager surnamed Wei, who is in charge of the converter station project, said the power transmission capacity of the project is 750,000 kilowatt-hours, which is not enough to provide electricity to the three Northeast provinces of Heilongjiang, Jilin and Liaoning.

"The converter station and transmission line may serve only Heilongjiang province, mainly for Heihe region and nearby areas," Wei said.

As the two big energy producers and consumers, China and Russia will deepen their cooperative relationship in the energy sector.

Russia's Deputy Energy Minister Andrei Shishkin said his country intends to increase its electricity supply to China in the coming years, according to a report on Cable News Network on June 16.

Shishkin said that Russia has drawn up relevant cooperation programs, and the countries are discussing electricity cooperation.

China Daily

(China Daily 06/28/2011 page15)