November 30, 2012
The State Grid Corporation of China: The World’s Biggest Electric Utilities Company
The State Grid Corporation of China, owned by the Government of the People’s Republic of China, is the electric company that distributes power to the whole of China, making it the world’s biggest and widest electric utilities company. Found in the Xicheng District of Beijing, China, the company manages its power distribution from regional subsidiaries in the country. The State Grid Corporation of China is currently divided into five smaller power generation groups and is currently the seventh largest company in the world as of 2011.
The company was founded in 2002 by the State Council of the People’s Republic of China in an effort to restructure the entire country’s electric utilities system to avoid a monopoly. This restructuring led to the division of The State Grid Corporation of China into two large grid companies, five smaller generation groups and four business companies. Led by Liu Zhenya, President and CEO, the company was able to provide electricity to rural areas, effectively making life better for the people there. As of 2011, the company had a total revenue of 259.14 billion US dollars and net income of 5.678 billion US dollars, with over 1.5 million individuals employed under them.