• 15 mins Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 hour Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 hours New Video Game Targets Oil Infrastructure
  • 6 hours Shell Restarts Bonny Light Exports
  • 7 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 13 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 18 hours British Utility Companies Brace For Major Reforms
  • 22 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
Alt Text

What’s Stopping An Oil Price Rally?

Oil prices rallied in Q3…

Alt Text

Corbyn Seeks To Renationalize Britain’s Utilities

Jeremy Corbyn wants to renationalize…

Alt Text

Oil Prices Spike On Middle East Tensions

Oil prices jumped upwards on…

John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

More Info

Indian Business Press Trashes China's Electrical Grid Ambitions

Indian Business Press Trashes China's Electrical Grid Ambitions

Rising BRIC economic superpowers India and China, while having vastly differing economic and political systems nevertheless have one thing in common.

A surging need for increased electrical output to fuel their booming economies.

India achieved an unenviable world record, when during a torrid summer earlier this year, an electric grid failure on 30-31 July resulted in the world's largest blackout, affecting more than 600 million people.

It was easy to see it coming, as India’s surging economy has resulted in increased electrical demand that the country’s ramshackle power grid has been unable to meet. Ensuring such events will occur again in the future, 300 million people, a quarter of India’s population, still have no access to electrical power, and as they are connected to the national grid, demand will only further increase.

Related Article: Use New Oil & Gas Production Revenues to Invest in Energy Innovation

According to a recent report by the International Energy Agency, “India suffers from a severe shortage of electricity generation capacity. According to the World Bank, roughly 40 percent of residences in India are without electricity. In addition, blackouts are a common occurrence throughout the country's main cities. Further compounding the situation is that total demand for electricity in the country continues to rise, and is outpacing any increases in capacity. Additional capacity has failed to materialize in India in light of market regulations, insufficient investment in the sector, and difficulty in obtaining environmental approval and funding for hydropower projects. In addition, coal shortages are further straining power generation capabilities.”

So it comes as no little surprise that the Indian business press is gleefully citing critics of China’s State Grid Corp., which is pressing the government to approve a $250 billion upgrade plan that it contends would make China's grid an international trailblazer, but which critics contend is both too costly and which could expose the system to blackouts.

During a meeting two weeks ago in Beijing where China's leadership met to decide the nation’s transition of power, China’s State Grid Corp. head Liu Zhenya, presented his case to the Chinese leadership to approve a massive plan to upgrade the country’s electrical transmission system, whose bottom line would be more than four times the cost of the Three Gorges Dam. China’s State Grid Corp. intends to weave across the Chinese landscape as many as 20 ultra-high voltage (UHV) power lines, labeled “power corridors,” over the next seven years.

“The Economic Times” quotes Joseph Jacobelli, a Hong-Kong based independent energy analyst, who was formerly head of global clean technology research at HSBC Holdings PLC as observing, "The UHV projects are massively expensive and, together with many observers, I am not convinced of the projects economics and not convinced the projects make sense from an energy supply security perspective."

Want more? Two months ago the European Union Chamber of Commerce in China issued a report noting, "Connecting regional power grids by UHV transmission line has high risk of leading to national blackouts."

Related Article: The Top Eight Energy Risks for 2013

Not surprisingly, the project is viewed somewhat differently in China. At a news conference of the 18th National Congress of the Communist Party of China chairman of the Tebian Electric Apparatus Stock Co Ltd (TBEA) in the Xinjiang Uygur autonomous region Zhang Xin told reporters, "The government is going to approve many UHV transmission projects in the coming years, to satisfy the energy demand during the economic expansion. Unprecedented opportunities for China's UHV transmission and new-energy industries are coming, along with the government's plan to accelerate economic restructuring."

What is beyond dispute is China’s increasing need for reliable electricity, as government analysts project that the nation’s capacity needs to grow to 1,500 gigawatts by 2020 from 1,060 GW at the end of 2011.

If the massive UHV project is approved, it will place China’s State Grid Corp., which already transmits and distributes electricity to 1.1 billion Chinese, nearly 90 percent of China’s population, in an even more commanding position, a near monopoly situation that Western (and Indian) power companies can only dream of. In contrast, the state-owned Power Grid Corp. of India Ltd. supplies about 50 percent of the total power generated in India on its transmission network.

So, who’s correct, the critics or the optimists? India has no comparable scheme even in the planning stages.

One thing is certain – if the Chinese mange over the seven years successfully to construct their UHV grid additions, then it will give a massive boost not only to the country’s economy but the population’s standard of living.

All of which no closely will be watched by 600 million sweltering Indians and 300 million of their fellow citizens waiting to turn on their lights.

By. John C.K. Daily

Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News