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Power giant powers Belt and Road expansion in Southeast Asia

By Xu Jingxi in Guangzhou | China Daily | Updated: 2017-06-01 06:53

A major Chinese energy company will continue to expand into Southeast Asia countries as part of the Belt and Road Initiative.

China Southern Power Grid Co Ltd supplies electricity to vast areas here, including Guangdong province, the Guangxi Zhuang autonomous region and the areas of Yunnan, Guizhou and Hainan.

But since the energy giant is based in Guangdong in South China, it has put together cooperation deals with Southeast Asian countries such as Vietnam, Laos and Myanmar.

"China Southern Power Grid has been actively participating in the Belt and Road Initiative in recent years and will continue to do so," said Wang Lin, the utility firm's international business director.

Last year, the company exported 1.472 billion kilowatt hours of electricity to Vietnam, 95.66 million kWh to Laos and 165 million kWh to Myanmar, according to its annual report, which was released last week.

China Southern Power Grid has also played a crucial role in infrastructure projects across the region.

These are a major part of the Belt and Road Initiative, which connects economies in Asia, Africa and Europe through a modern day Silk Road of trade and cooperation.

"Through joint investment and construction, we are heavily involved in enhancing the power generation capacities in neighboring economies and those related to the Belt and Road Initiative," said Wang.

The Vinh Tan 1 Power Plant, China's biggest investment project in Vietnam, has also brought jobs to the country.

More than 1,850 Vietnamese workers, or about 66 percent of the total employees, are engaged in the development.

In terms of cost and size, it is big. China Southern Power Grid owns 55 percent of the $1.75 billion coal-fired power plant.

Once at full capacity, it will generate approximately 8 billion kilowatt hours of electricity annually by 2019, according to People's Daily.

This will help solve power shortages in the southern region of Vietnam.

"The infrastructure development projects use the world's most advanced technologies," said Wang. "This greatly improves the local level of civil engineering construction.

"The projects also create a large amount of job opportunities for local people."

The Nam Tha 1 hydropower station in Laos is another build-to-operate transfer investment by the Chinese utility company.

It is expected to come online next year and provide more than 2 million residents in northern Laos with clean, affordable energy.

The hydropower plant will also be included in the network between China, Laos and Thailand. Surplus power can then be switched to the grid in Thailand.

"Developing infrastructure and enhancing interconnectivity with neighboring economies is at the core of the Belt and Road Initiative," said Wang. "We will continue to seek opportunities of investment and cooperation in the economies related to the initiative."

Apart from industrial cooperation, China Southern Power Grid also plays a key role in strengthening bonds between communities - another major element of the Belt and Road Initiative.

Last year, the company launched a funding project for 110 college students from five countries in the Greater Mekong Region.

The fund will help students from Laos, Thailand, Vietnam, Myanmar and Cambodia study in China until 2025.

Part of the aim is to train the next generation of electrical technicians and civil engineers.

Up to 11 undergraduates from Laos, Myanmar and Cambodia will study at Kunming University of Science and Technology in Yunnan province.

This year, around 10 students from Cambodia will do a master's degree at Guangxi University.

Contact the writer at xujingxi@chinadaily.com.cn

xujingxi@chinadaily.com.cn

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