Kou Wei, Chairman of State Grid: Why to build "three types and two networks" and practical deployment

China Energy Storage Network News: At the China Electricity Council's first chairman meeting in 2019 and the 2019 Economic Situation and Power Development Seminar held in Beijing on April 18, relevant experts and power company leaders conducted in-depth discussions on major issues in the development of the energy and power industry.

Kou Wei, Chairman and Party Secretary of State Grid Corporation of China, attended the meeting and delivered a keynote speech entitled "Promoting the construction of 'three types and two networks' and building a first-class energy Internet enterprise with global competitiveness". The following is the full text of the speech:

Kou Wei: 2019 marks the 70th anniversary of the founding of New China. There are many major events and happy occasions, and the domestic and international situations are complicated. It is of great significance to do a good job in power supply security.

At the beginning of this year, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and based on the foundation laid by previous leadership teams, State Grid Corporation of China made a strategic deployment to comprehensively promote the construction of "three types and two networks" and accelerate the creation of a world-class energy Internet enterprise with global competitiveness. The "three types" are hub type, platform type, and sharing type, which are the characteristics of the enterprise; the "two networks" are strong smart grid and ubiquitous power Internet of Things, which are the material basis. After the construction of "three types and two networks" was proposed, it has received great attention from the government, enterprises, scientific research institutions and all sectors of society, and many brother units have expressed their support. I would like to take this opportunity to introduce the two aspects.

1. Why does State Grid want to build “three types and two networks”?

First, this is our strategic choice to proactively adapt to the integrated development trend of the energy revolution and the digital revolution. Since the new century, especially since the second decade, energy and power technologies such as advanced transmission, smart grid, new energy, and terminal energy electrification have developed rapidly, and have been continuously integrated with modern information communication and digital technologies such as "big cloud, things, mobile, and intelligence", which are also developing rapidly, promoting the increasingly profound changes in the functional form and operation mode of the power grid. The construction of "three types and two networks" is to better adapt to and lead this trend to achieve higher quality development.

Second, this is our strategic choice to actively adapt to the deepening of power reform and state-owned enterprise reform. As the market-oriented reform of the power industry continues to deepen, the traditional path of power grid development is becoming narrower and narrower. State-owned enterprises must step up efforts in mixed ownership reform to form a complete modern state-owned enterprise system with Chinese characteristics. The construction of "three types and two networks" demonstrates our determination to reform ourselves, deepen reform, and achieve rebirth through reform.

Third, this is our strategic choice to promote the common development of our own enterprises and partners. The central leadership requires that, as the "national team" and "powerful weapon of a great country", central enterprises should not only develop themselves well, but also drive the development of upstream and downstream of the industrial chain and partners. Promoting the construction of "three types and two networks" means adhering to the concept of open cooperation and win-win, better supporting power grid connection and new energy consumption; driving and promoting the transformation and upgrading of electrical equipment, seizing the commanding heights of energy Internet technology; and cooperating with all parties in various ways in engineering projects, user-side resource development, data value mining, etc., and striving to achieve mutual benefit, win-win and common development.

Fourth, and most importantly, this is our strategic choice to implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and practice the "two safeguards" with practical actions. In the new era and new situation, State Grid Corporation of China cannot rest on its laurels and must take on new responsibilities and make new contributions.

II. State Grid's practice in promoting the construction of "three types and two networks"

In accordance with the SASAC's deployment to build a world-class demonstration enterprise, we regard 2019-2021 as a strategic breakthrough period, and strive to initially build a world-class energy Internet enterprise with global competitiveness by the 100th anniversary of the founding of the Party. This year is the first year of the breakthrough period. In view of the situation throughout the year, we adhere to the general tone of seeking progress while maintaining stability and focus on promoting work in five areas.

First, we need to ensure safe production and stable operation. Ensuring safe and stable operation of the power grid has always been our top priority. In terms of operations, we are facing unprecedented pressure this year due to factors such as the reduction of general industrial and commercial electricity prices and the slowdown in electricity growth. In the first quarter, the company's electricity sales and revenue growth rates decreased by 4.9 and 11.5 percentage points year-on-year respectively, and the losses of provincial power grid enterprises are expanding.

Second, we will coordinate and promote the construction of the "two networks". We will focus on eliminating the shortcomings and "bottleneck" of the power grid, help win the battle against pollution and targeted poverty alleviation, improve the overall efficiency of the power grid, and reduce the wind and solar power abandonment rate to less than 5%. In accordance with the principle of practicality and effectiveness, we will promote the construction of ubiquitous power Internet of Things pilot projects in a classified manner.

Third, we will adhere to the dual-wheel drive of reform and innovation. We will resolutely implement the various reform tasks defined in the Central Economic Work Conference and the Government Work Report. We will strive to achieve greater breakthroughs in mixed ownership reform. We will focus on key technical bottlenecks and concentrate superior forces to jointly tackle key problems.

Fourth, promote service improvement and business upgrade. Continue to optimize the power supply organization system and business processes, build an "online state grid", improve demand response speed and service quality, optimize the power business environment, and ensure that the average time for enterprises to handle electricity business is reduced to within 45 working days by the end of the year. Accelerate the development of emerging businesses and cultivate new growth momentum.

Fifth, make good use of "two markets and two resources" in a coordinated manner. Focus on the construction of the "Belt and Road", give full play to the company's comprehensive advantages, steadily expand international business, operate and implement existing projects well, and enhance the ability to allocate global resources and international business development.

(Source: Nengjian App)