China Signs Agreement to Transfer 6,470 Megawatts of Power-Generating Assets Held by State Grid

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Researched by Industrial Info Resources (Sugar Land, Texas)--The State Electricity Regulatory Commission (SERC) has said that the transfer of 6,470 megawatts (MW) in power-generating assets is nearly complete. During the nation's electric power system reform in 2002, the former State Power Corporation was split into five groups with each holding a portion of the assets. However, the State Grid Corporation (Beijing) has been temporarily managing the 6,470 MW.

The 6,470 MW of power-generating assets were mainly sold to the five power producers. A part of the assets was sold to China Shenhua Group (Beijing) and Xiangtou Holding Group (Changsha, China). In order to ensure the safe production and stability of the staff team, SERC decided to carry out the transfer of safe production, operation and management. The transfer agreement, assets transaction, as well as change in industrial and commercial registration will be conducted later.

In February 2006, the State Council further clarified that the SERC will work with the State Grid to submit a proposal for the sale of these assets as soon as possible upon collecting comments from the five power producers.

As an extension of the electric power system reform in 2002 and one of the important tasks in the initial period of the 11th five-year plan (2006-10), SERC employed intermediary organizations to carry out duty investigation and assets evaluation, and proposed the sale proposal together with the State Grid.

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