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By Xiao Wan (China Daily)
Updated: 2007-07-13 09:35

State Grid Corporation of China (SGCC), the nation's largest power transmission company, yesterday opened a center in Beijing for North China Grid Co Ltd to help allocate electricity and connect supply with demand.

With the move SGCC now has 30 power exchange centers in the nation.

North China Grid Co Ltd is a subsidiary of SGCC.

SGCC said the exchange centers play an important role in building a power system by helping optimize allocation.

Analysts said power exchanges serve as a way to promote efficient use of resources and will become more common as grid companies strengthen links between regional grids.

China's grid companies are now investing billions of yuan to connect power networks.

Exchange projects help eastern areas to tap rich power resources of western areas, said Liu Baohua, an official with the State Electricity Regulatory Commission.

"The setting up of power exchange centers is an important step in reform of the nation's power industry," he said.

As part of the reform, the Chinese government on May 30 signed contracts with independent power companies to sell 9,200 megawatts of power assets for 18.7 billion yuan.