CSG Working with Shenzhen to Build a Pilot Demonstration Area of Socialism with Chinese Characteristics

Shenzhen - China will be working with the major southern city of Shenzhen into a pilot demonstration area of socialism with Chinese characteristics, according to a recent document issued by the Communist Party of the China Central Committee and the State Council.
This is a significant national strategic decision planned and promoted by President Xi Jinping.
Over the past year, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, China Southern Power Grid has assumed its appropriate role in implemented the decisions of the Party Central Committee and the regional coordinated development strategy to serve the metropolitan Shenzhen community.
During Year 2019, CSG made significant contributions to build-up the Shenzhen regional community and during the current Year 2020, Shenzhen has been ranked first in terms of electricity availability in the country.
The overall average interruption hours of customer (AIHC-1) was shortened to a world-class level with that of Futian CBD to 0.19 minutes and each unit of electricity created a GDP of 28.6 yuan.
A number of innovation platforms from the CSG Technology Development Co. Ltd., were established in Shenzhen and the Huawei Kunpeng processor ecosystem was first in the world applied to the power industry.
Reaching High Quality Development
Electricity drives the development of a city and leads all reform efforts. In a macro sense, China Southern Power Grid senior managers acts, plans and unites the entire electricity grid to supply high-quality electricity for Shenzhen’s development.
During Year 2019, CSG senior managers formulated “Key Initiatives of CSG on Serving Shenzhen in the Construction of the Area”.
China Southern Power Grid has boldly formulated and implemented a strong action plan with the Shenzhen Power Supply Bureau, detailing 140 tasks and 292 sub-tasks.
Concurrently, CSG has built many cooperation platforms through the “Forum on Digital CSG in the Development of Guangdong-Hong Kong-Macao Greater Bay Area and the CSG International Technology Forum.”
During Year 2020, CSG senior managers signed an agreement with Shenzhen Government to deepen cooperation in many key aspects, specifically in five areas, namely:
·high-quality power service
·legal system for power supply and consumption
·innovation of energy industry
·modern power supply service systems, and
·sustainable development of energy
Both parties have pledged to work together to increase the vitality and competitiveness of Shenzhen as an “engine for development” and it is of far-reaching significance to the joint development of both sides.
CSG senior manager have pledged to continue to support innovations in Shenzhen by accelerating the digitization of power grids, enterprises, services, and industries, and realizing typical application of “5G + digital grid”.
This year, as a number of new power-related industries grow throughout the Shenzhen region, Southern Power Grid Technology Development Co., Ltd. is committed to building platforms that can incubate start-ups, transform fruits, invest and finance science and technology, as well as operate and transform intellectual property.
China Southern Power Grid aims to realize complementarity in advantages of local innovation, capital elements and grid resources and to grow the smart energy industry cluster in Shenzhen, thus spearheading the promoting of digital technology innovation and economic development and nurturing new sources of economic growth.
Shenzhen Digital Power Grid Research Institute of CSG focuses on R&D innovation, product delivery and operation services in intelligentization, digitalization, and informatization. It is China’s first and only company that is evaluated as Level 5 in both CMMI-DEV and CMMI-SVC, which represents the highest level in the industry in software development, service capability, and project management.
CSG Electric Vehicle Service Co., Ltd. has integrated seven charging service platforms in China and created an EV charging brand named “ShunYiChong”.
It put into operation the Lianhuashan Charging Station, China’s first transformer substation plus charging station site and the Minle Park and Ride Charging Station, which is located in the world’s largest transportation hub in Shenzhen.
In May, China Southern Power Grid engineers started the Guangming Gongchang Road Charging Station Project which is expected to become the most professional charging station for heavy vehicles in Shenzhen.
Headquartered in Shenzhen, the Dinghe Property Insurance Co., Ltd. has set up 15 provincial agencies and approximately 152 third- and fourth-tier agencies. The Company has achieved growth in both premium and operating profits for several years and has been graded A in Legal Entity Operation Evaluation, Service Evaluation, and Comprehensive Risk Rating by the China Banking and Insurance Regulatory Commission.
What’s more, it was first rated A3 by Moody's in Year 2019.
In this new era, China Southern Power Grid has positioned itself as a national platform of value chain integration and is accelerating its pace to become a world-class enterprise.
Leading the Way Forward
CSG’s cooperation with Huawei has attracted widespread attention, as it is the first time in the world that Huawei's Kunpeng processor ecosystem has been used in the power industry … which served to replace imported core equipment with “homemade” ones in power grids. The two parties have built an ICT joint innovation lab, which places its emphasis on eight core technology directions: 5G technology, power supply quality, superconducting power transmission, integrated smart energy, artificial intelligence, and security chips. It demonstrates the application scenarios of “5G + homemade equipment throughout grid + smart grid” for power transmission and distribution.
CSG senior managers have attached great importance to the construction of new infrastructure, new urbanization, and major projects. The Company has formulated a special work plan to ensure power supplies for new infrastructure projects, established a power service green channel for 5G base stations and upgraded the direct power supply for more than 2,400 5G base stations in Shenzhen, saving approximately 100 million yuan in business and residential electricity costs.
During Year 2019, the AIHC-1 in Shenzhen was shortened to a world-class level of 32.4 minutes, better than that of some international cities such as London.
The AIHC-1 in Futian CBD was only 0.19 minutes, which was at the world's top level, better than that of Manhattan and New York. In the first half of 2020, the AIHC-1 was 7.2 minutes, down 47% year on year.
The Shenzhen Power Supply Bureau has been ranked as one of the energy leaders throughout the international community in varied aspects, including: procedures, time, cost and price transparency based on the World Bank’s model. According to a survey on customer satisfaction degree with public services in Shenzhen by Guangdong Investigation and Research Center, CSG’s power supply services has been ranked first for nine consecutive years.
Continuing to Innovate & Reform
During Year 2020, CSG senior managers have continued to deepen the reform of state-owned enterprises, promoting the comprehensive reform of Shenzhen Power Supply Bureau to form a model for state-owned enterprises in reform and development. As an active player of mixed ownership, China Southern Power Grid has made the Qianhai Power Supply Company into China’s first mixed-ownership incremental power distribution enterprise, a focus of the power industry, by building three major business sectors: power supply, power sales and comprehensive energy services.
CSG has also introduced to Qianhai Company new administrative systems and summarized six “Qianhai experiences” that can be popularized. In the future, CSG will continue to build the model of incremental power distribution for mixed-ownership enterprises.
Also, backed by the legislative power of the Shenzhen Special Economic Zone, CSG senior managers have assisted the Shenzhen Government in the rule of law on electricity by serving to explore the establishment of a legal system for power supply and consumption, which is applicable to the characteristics of modern cities and power market mechanisms, and for the financing and lending policy based on “finance + credit report on electricity consumption.”
Leading the Trend to Form a Green and Low-carbon Lifestyle
During Year 2019, the Shenzhen Power Supply Bureau replaced fuel energy with a total of 1.78 TWh of electricity, completing the construction task of the national shore power layout plan. Additionally, the proportion of electricity generated from non-fossil fuel in Shenzhen was 68.8%, well above the national average.
As the main receiving end of the West-East Power Transmission Project, Kunliulong DC project, when in full operation, will send approximately 2 TWh of Yunnan’s clean hydropower to the Greater Bay Area, which is equivalent to an annual reduction of 9.2 million tons of coal consumption and 24.5 million tons of carbon dioxide emissions in the Greater Bay Area.
These and other efforts are expected to advance energy conservation and emission reduction, air pollution prevention and control and pushing forward activate green development throughout Shenzhen.
Leader of Ensuring Power Supplies
In meeting the challengers of the pandemic and a complex international situation, China Southern Power Grid has played a critical role in stabilizing the national economy.
Since the outbreak, CSG senior managers have reduced the price of industrial and commercial electricity by 5%, and implemented supportive two-part electricity pricing structure as electricity costs are expected to be reduced by 20 billion yuan during the entire current year which will directly benefit 7.99 million companies.
Moreover, China Southern Power Grid now allows key customers to defer payment of electricity bills without cutting down their power supplies, involving an amount of 7.6 billion yuan. The Company also continues to invest hundreds of billion yuan in its projects, with the peak seeing 160,000 people working in more than 30,000 sites. These 22 measures have reduced the cost of electricity for enterprises, which is a powerful drive for the industrial chain to resume production.
Following the unified deployment of these dramatic measure by CSG, the Shenzhen Power Supply Bureau senior managers led the way in balancing their response to the pandemic and managing their power supplies. This ensured safe and stable power supply in special times by making the external power supply possible in the emergency area of the Shenzhen Third People’s Hospital (Phase 2) in nine days and internal power supplies in 15 days (60 days in normal conditions).
At the same time, CSG senior managers introduced measures to guarantee power supply for enterprises to control the pandemic and resume work and production. The Company launched a special campaign to speed up power supplies with “three-zero” services, namely zero contact, zero examination and approval and zero investment.
China Southern Power Grid also offered non-stop power supplies to defaulting SMEs, business premises and residents facing difficult hardships caused by the COVID-19 pandemic and extended the time limit for payment of their electricity bills.
As the core “engine” that drives the development of the Greater Bay Area, Shenzhen is closely connected to the Hong Kong power grid, which means that Shenzhen requires a stronger power grid and better electrical maintenance services.
During Year 2020, CSG senior managers have been actively promoting the planning and construction of the Shenzhen power grid.
In a recent conference on Shenzhen power grid construction, the power grid project was included into the city’s major programs, and a government-led long-term coordination mechanism for power grid construction was established. Based on the main grid of VSC-HVDC in each district of the periphery of the Greater Bay Area, CSG bettered Shenzhen’s saturated grid plan and planned the future power transmission channels.
CSG continues to develop its 14th Five-Year Plan (2021-2025) and medium- and long-term smart grid plans to improve the safety and quality of power supplies as well as the capability of disaster prevention and response in Shenzhen. The Company has also integrated the plans into Guangdong's land planning and Shenzhen's relevant plans to reserve land for substation construction and transmission line corridors.
Additionally, CSG engineers have put into operation several power transmission projects and expanded the 500 KV Eastern Converter Station, thus guaranteeing the power supply for the ongoing economic recovery.
During Year 2020, Shenzhen plans for seven other high-quality power supply pilot zones besides Futian and Qianhai zones. At present, with the independently developed distributed self-healing technology for distribution network, CSG, the first in China, restored power in several milliseconds after distribution fault in actual operating environment.
By the end of this year, there will be no less than 1,500 self-healing lines in Shenzhen and the coverage rate of centralized self-healing operation of standard grid lines will be 100% by 2025.
Year 2020 is the concluding period for building a moderately prosperous society in an all-round way and the 13th Five-Year Plan, as well as the 40th Anniversary of the Shenzhen Special Economic Zone.
Since Shenzhen struggled to build the zone more than four decades ago to build the first pilot demonstration area, China Southern Power Grid has not been a silent  witness or fellow traveler, but a key service provider, builder and dear friend of the people of Shenzhen.
In the future, CSG senior managers will continue to work hard to serve the construction of both the Greater Bay Area and Shenzhen Pilot Demonstration Area.