State Grid Corp of China, which supplies power to 26 provinces, autonomous regions and municipalities across China, has initiated an emergency procurement plan this year worth 2.7 billion yuan in line with the government's policy to boost domestic demand.

Technicians check power transmission lines in Shanxi province. [Xinhua]

The firm said that 1.4 billion yuan will be used for power grid construction and upgrading in urban areas in central and western part of the country, and 1.3 billion yuan will be spent on power systems in rural areas.

The spending is part of the 4-trillion-yuan stimulus package unveiled by the State Council on Sunday to spur economic growth.

China on Wednesday announced plans to construct several large-scale energy and infrastructure projects to stimulate growth. Among these, 4 billion yuan will be invested to upgrade power grids.

These projects include an 800-kv power transmission line from Jinping in Sichuan to the southern part of Jiangsu province. Sources with State Grid yesterday said that "the project is expected to come into operation in 2012".

The Sichuan-Jiangsu power line is part of State Grid's plan to build a network of ultra-high voltage power transmission lines across the country.

State Grid started the construction of its first ultra-high voltage power transmission line in 2006, which links southeastern parts of coal-rich Shanxi province with Jingmen, a city in Hubei province.

The company began building another ultra-high voltage power transmission line last year, with an investment of 18 billion yuan, linking Sichuan and Shanghai.

State Grid in January announced a plan to invest 253.2 billion yuan in upgrading and expansion this year, nearly 20 percent up from the 213 billion yuan invested last year.

China Southern Power Grid, which is responsible for power systems in four provinces and an autonomous region in the south of the country, yesterday said it will increase this year's investment by 810 million yuan in line with the government's policy to boost domestic investment.

The company said it would invest 60 billion yuan in the next two years to upgrade power systems.

(China Daily November 14, 2008)