On August 6, 2021, State Grid Corporation of China and Shaanxi Provincial People's Government held a video conference on the inauguration of State Grid Shaanxi Electric Power Co., Ltd. in Beijing and Xi'an, marking the official inauguration of State Grid Shaanxi Electric Power Co., Ltd. jointly funded by both parties.

Due to historical reasons, Shaanxi has formed a special operation pattern of "one province, two companies" of State Grid Shaanxi Electric Power and local electric power. Over the years, the two power grid companies have supported each other and developed together, making positive contributions to Shaanxi's economic and social development. However, the coexistence of two sets of management institutions and two management systems has also resulted in problems such as inconsistent grid planning, repeated investment and construction, cross power supply, and limited direct power trade, which is difficult to adapt to new situation requirements such as promoting clean low-carbon energy transformation and better serving high-quality economic and social development in Shaanxi. Shaanxi Provincial People's Government and State Grid Corporation of China firmly grasp the overall direction of power system reform and state-owned enterprise reform, base on the long-term development of Shaanxi Power Grid, rely on the capital, technology, management, service and talent advantages of State Grid Corporation of China, give play to the enthusiasm and initiative of both parties, establish a joint-stock company in accordance with the modern enterprise system, and realize the unified management Integrated development will better help achieve the goal of "carbon peaking and carbon neutrality".

On July 13, 2021, the People's Government of Shaanxi Province and State Grid Corporation of China signed the Framework Agreement on Streamlining the Management System to Achieve Integrated Development, and decided to jointly fund the establishment of "State Grid Shaanxi Electric Power Co., Ltd." (hereinafter referred to as "the new company"), which is responsible for the planning, construction, operation and management of power grids within the administrative region of Shaanxi Province, as well as the security of power grid systems, Ensure the fairness, non discrimination and openness of the power grid, and fulfill the obligation of universal service according to national regulations. This listing marks a key step and a new chapter in the integrated development of Shaanxi power grid. The new company will gradually integrate the institutions, personnel, businesses and assets of the State Grid Shaanxi Electric Power Company and Shaanxi Geoelectric Power Company, realize the "four unifications" of the provincial power grid (unified planning, unified construction, unified dispatching and unified management), and better support and serve the high-quality development of Shaanxi economy. The new company will accelerate the construction of a new power system with new energy as the main body, help Shaanxi catch up with and surpass new breakthroughs in the new era, and strive to build the new company into an international leading energy Internet enterprise with Chinese characteristics.

It is of great significance to establish a new company to promote the integrated development of Shaanxi power grid.

It is more conducive to the implementation of the new national energy security strategy. After integrated development, the new company will strengthen unified planning, unify construction standards, implement precise investment, promote the coordinated development of power grids at all levels, build a unified and strong Shaanxi power grid, significantly improve the safety and reliability of power grid operation, and better implement the new energy security strategy of "four revolutions and one cooperation"; Rely on the power grid to build an energy allocation platform and transmission platform, promote the development of new energy in Shaanxi, integrate Shaanxi energy Internet into the national energy Internet and the national unified power market, and give play to the advantages of Shaanxi energy resources in a larger scope.

It is more conducive to achieving carbon peaking and carbon neutrality. Shaanxi has a good complementarity of wind, fire and energy resources, and is the base for the collection and delivery of clean power resources in the west. In order to implement the goal of carbon peaking and carbon neutrality, Shaanxi's "14th Five Year Plan" development outline proposed that the total installed capacity of renewable energy in 2025 will reach 65 million kilowatts, 2.7 times that of 2020, and the guarantee of new energy consumption faces new challenges. After the integrated development, the new company will increase the power grid investment, accelerate the realization of "one grid" in the province, accelerate the construction of a new power system with new energy as the main body, expand the scale of Shaanxi clean power transmission relying on the ultra-high voltage transmission channel, expand the space for new energy consumption, promote the whole link of energy production, transmission, consumption, all factor supply and demand docking, and optimize the allocation of resources in western Shaanxi, Drive Shaanxi's energy industry transformation and upgrading and green low-carbon development.

It is more conducive to promoting the implementation of power reform and state-owned enterprise reform. After integrated development, the new company will integrate high-quality resources, reduce the costs of repeated construction of the two power grids, overlapping institutions and personnel, better play the scale effect and synergy benefits, improve the quality and efficiency of Shaanxi power grid operation, reduce the energy cost of end users, and effectively release the dividend of power reform. At the same time, power transmission and distribution networks belong to the category of "controlling the middle" of power reform. Unified management is conducive to improving the transparency of enterprise operations, helping to further rationalize the regulatory mechanism of power transmission and distribution prices, and better serving the government's supervision. On the other hand, this integration is an important measure to implement the three-year action plan of state-owned enterprise reform and promote the optimization of state-owned capital distribution and structure. It is also an active exploration of strategic restructuring and professional integration between central enterprises and local state-owned assets, which is conducive to effectively revitalizing Shaanxi power grid assets and achieving the preservation and appreciation of state-owned assets.

It is more conducive to optimizing Shaanxi's business environment. The State Grid has made every effort to create a power business environment of "excellent policy, excellent scheme, excellent process, excellent service and fast power connection" in Shaanxi, fully realizing the full coverage of "three zero" services for small and micro enterprises in urban and rural areas, shortening the power operation time of high and low voltage customers to 39.34 and 1.03 working days respectively, continuing to optimize and expand online service channels, and "online State Grid" to achieve full business online acceptance, The convenience and satisfaction of power supply services have been comprehensively improved, the efficiency of power supply has been further improved, and the electricity business environment has been continuously optimized. After the integrated development, the new company will unify the standards in terms of quality services, extend the high standard services of the National Power Grid to all urban and rural areas of the province, achieve the same quality services on the same network, help the implementation of the rural revitalization strategy, serve the improvement of Shaanxi's people's livelihood, better serve the high-quality development of Shaanxi, and help the land of Shaanxi to strive to write a new chapter in Shaanxi's new era. (locally contributed by State Grid Shaanxi Electric Power)

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