SGCC inks deal to set up power company in Tibet

China's largest electricity transmission company—the State Grid Corp of China (SGCC) has signed an agreement with the Tibet Autonomous Region government to set up a power company there, namely the Tibet Power Co. Ltd.

The new company will be jointly invested by SGCC and the local government. Being the larger stake holder, SGCC will invest more than RMB 200 billion this year to help promote hydropower development, develop new energies, and expand the grid network and power supply coverage in the region.

The company is also said to enjoy the preferential policy support from both the central and local governments, so as to achieve the goal of providing electricity to every rural household in the country by 2010, the end of the 11th Five-Year Plan.

Formerly know as "State Power Corporation", SGCC operates both the electric grid and power plants all over mainland China. Currently, it focuses on connecting and expanding the power networks around the country.