Mao Weiming's survey shows the key points of each sector of State Grid in 2020

A sudden epidemic has put Mao Weiming, who has just taken office as the chairman of the State Grid Corporation of China, in a "big test". In the one month or so of epidemic prevention and control work, the State Grid Corporation of China has operated in an orderly manner. As a logistical support, the State Grid Corporation of China has effectively guaranteed the front-line epidemic prevention and control work.

As the epidemic prevention and control enters a new stage, Mao Weiming also has to start preparing for the development and reform of the State Grid Corporation this year. Xiangnenghui noted that in the past half month or so, Mao Weiming has successively investigated several subsidiaries of the State Grid Corporation. While inspecting the epidemic prevention and control work, Mao Weiming also gave instructions on the future development of each business segment.

Today, Xiangnenghui will take everyone to review Mao Weiming’s research on each subsidiary and analyze the future development of each business segment.

State Grid Integrated Energy Services Group

Chairman Mao Weiming emphasized that the State Grid Comprehensive Energy Service Group has clear goals and directions, which are in line with the new development concept, the general tone of work of seeking progress while maintaining stability, and the decision-making and deployment of the Party Committee of State Grid Corporation of China. In the next step, the State Grid Comprehensive Energy Service Group must implement the "five full efforts" and "five grasps" work ideas, adhere to the "market-centered and customer-centered" concept, and strive to exceed 20 billion yuan in operating income.

Chairman Mao Weiming pointed out that the State Grid Comprehensive Energy Service Group has strong vitality and competitiveness in all its businesses, and has a good market prospect. It is necessary to seek benefits from management, tap potential from existing stocks, focus on key areas, and use new smart cities and county-level comprehensive energy as carriers to reduce social energy costs and increase corporate profit margins through comprehensive energy services to achieve a win-win situation. Biomass power plants benefit the country and the people, and we must vigorously implement them, turn waste into treasure through market pull, government support, and mobilizing the enthusiasm of farmers, and strive to achieve an organic unity of economic, social, and environmental benefits. We must actively study and explore the development path and model of energy storage, combine UHV construction and new energy consumption needs, form a set of mature technologies and business models, and achieve balanced development of energy storage and power grids in the future.

On January 15, 2020, State Grid Energy Conservation Service Co., Ltd. was officially renamed State Grid Integrated Energy Service Group Co., Ltd. According to public information, State Grid Energy Conservation Co., Ltd. achieved a total operating income of 6.354 billion yuan in the first three quarters of 2019, an increase from 6.139 billion yuan in the same period last year, and achieved a net profit attributable to the parent of 320 million yuan, an increase from 318 million yuan in the same period last year.

Achieving a revenue of 20 billion yuan is not an easy task for State Grid Integrated Energy Services Group. Mao Weiming gave three main directions for the future development of the Integrated Energy Services Group:

1. Comprehensive energy services based on new smart cities and county integrated energy. The Integrated Energy Services Group is the leading enterprise of State Grid Corporation of China in the layout and expansion of integrated energy business. Therefore, integrated energy services are undoubtedly the core business. This time, targeting new smart cities and county integrated energy is a precise positioning and focus on the huge integrated energy service market.

2. Biomass power generation. The installed capacity of biomass power generation of the Integrated Energy Services Group exceeds 1,000MW, and it is in a leading position in China in terms of both scale and development quality. Biomass power generation not only has economic benefits, but also ecological and social benefits. As a "national heavy equipment", the State Grid Corporation of China is actively promoting biomass power generation.

3. Explore and study the development path and model of energy storage. It is particularly mentioned that it is necessary to combine the construction of ultra-high voltage and the demand for new energy consumption. It can be seen that the development of energy storage business in the State Grid’s territory must first serve the main business.

For analysis of State Grid's integrated energy business, please click on the Energy Sharing article: State Grid's overlooked profit-making tool

State Grid E-commerce Company and its affiliated financial institutions

We must actively explore new business forms and models, better play the role of online industrial chain financial platforms, and provide convenient and efficient financing services for small and medium-sized enterprises.

We must focus on the three major tasks of serving the real economy, preventing and resolving risks, and deepening financial reforms, continue to strengthen the comprehensive strength of the company's financial business, effectively manage and control various financial risks, actively grasp new business forms and directions such as green finance, science and technology finance, inclusive finance, and supply chain finance, apply modern science and technology to improve financial service capabilities and levels, and provide financial support for the development of the company's main business.

As the main business of State Grid Corporation of China is power grid operation, the financial business should serve the main business more and should not "occupy the magpie's nest". From Mao Weiming's speech, we can also see that the financial business also puts the country's requirements for the financial industry in the first place.

Secondly, the State Grid's financial business also needs to explore new business ecosystems, mainly online platforms, services for small and medium-sized enterprises, inclusive finance, etc. The expansion of these businesses requires the State Grid Corporation to mine and apply big data while strengthening the development of networking and intelligence.

State Grid Electric Vehicle Company

We must strengthen operations and promotion, promote strong alliances, integrate market resources, and continuously improve economic, environmental, and comprehensive benefits.

State Grid already operates the largest Internet of Vehicles platform in China. As a power grid operator, it has a natural advantage in the integration of charging pile resources. Judging from Mao Weiming's speech, State Grid Electric Vehicle Company is likely to strengthen the merger and integration of market resources in 2020. Similar work in 2019 to establish an Internet of Vehicles platform with operators such as the Southern Power Grid will continue to be strengthened in the new year.

China Electric Power Research Institute

We must further increase the intensity of scientific and technological innovation in the power grid, open up the talent chain, innovation chain, technology chain, value chain, and capital chain, deepen the integration of production, education, and research, cultivate core competitiveness, and provide reliable guarantees for the safe and stable operation of large power grids.

The China Electric Power Research Institute is the main force of scientific and technological innovation of the State Grid Corporation of China. This time, Mao Weiming particularly pointed out that it is necessary to open up the talent chain, innovation chain, technology chain, value chain, and capital chain. It can be foreseen that in the future, State Grid will deeply tap into these advantageous resources of the China Electric Power Research Institute, strengthen the integration of industry, academia, and research, and further improve the core competitiveness of the China Electric Power Research Institute.

State Grid Material Company

We must innovate methods and, on the basis of deepening the "deregulation, decontrol and service" reform, make full use of information and intelligent means to improve the efficiency of material supply, and do a good job in process reengineering and model innovation.

Here again, information and intelligent means are mentioned. One thing that can be predicted is that in the future, multiple business sectors of State Grid (including internal and external) will strengthen the improvement of business through data, information and intelligence. The efforts made by State Grid Corporation in corporate transformation in the past year will continue to play an important role in the future development of State Grid Corporation.