Electricity distribution reform pilot project takes place in Qingzhen

The signing ceremony of the pilot project for the reform of the distribution of electricity in Qingzhen Economic Development zone, Guizhou province, was held in the Qingzhen Municipal People's Government on February 20. 

Sun Shaoxue, deputy secretary of the CPC Qingzhen Municipal Committee and mayor of Qingzhen city, and other leaders related to the project attended the signing ceremony.

Xie Liang, deputy director of Guiyang Power Supply Bureau, signed an investment cooperation agreement with Qingzhen Industrial Investment Co., Ltd. and Qingzhen Urban Development Investment Co., Ltdon behalf of Guizhou Power Grid Corporation. The signing of the contract marks the official start of the establishment of Guizhou Qingzhen Power Distribution Co., Ltd.

The pilot project will cover an area of 59.2 square kilometers, consisting of two parts. The total investment of the project is expected to reach 1.04 billion yuan ($1.47 billion), including a first phase of 350 million yuan. 

The development zone now has one 110 kV substation and one 35 kV substation, 16 10kV lines, 201 10kV public distribution transformers, and 195 special transformers, with the total number of users at 29,138. In 2018, the power sale quantity was 980 million kilowatt hours.

The incremental distribution of electricity business in Qingzhen Economic Development Zone was one of the first group of reform pilot projects in China. It was planned in March 2017 and completed project bidding in March 2018.

The registered capital of Guizhou Qingzhen Power Distribution Co., Ltd. is 400 million yuan, with Guizhou Power Grid Corporation, Qingzhen City Industrial Investment Co., Ltd. and Qingzhen Urban Development Investment Co., Ltd. holding shares of 45 percent, 40 percent, and 15 percent, respectively.

Guizhou Qingzhen Power Distribution Co., Ltd. started operations in June. It is an important milestone for promoting the reform of the power system in Guizhou. In addition, this move is conducive to exploring the mechanism of electricity pricing in the incremental distribution reform and optimizing power distribution and operational service in the development zone.