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In a bid to meet China's surging energy demands, the country's two grid companies are looking at overseas opportunities to source electricity for the fast-growing domestic economy.

The biggest electricity distributor, State Grid Corp of China is in initial talks with neighbouring countries in the north such as Russia, Kazakhstan and Mongolia, to build coal-fired or hydro power plants in these resource-abundant nations, said a director at the top grid firm's research arm yesterday.

"These negotiations are still at the preliminary stage, and the company is investigating appropriate sites for these projects," the director said yesterday on the condition of anonymity.

Another company source said no concrete project has been secured yet.

These power plants in the neighboring countries, if they go ahead, may be built by State Grid or other Chinese power plant builders, but State Grid will be responsible for building the transmission lines to send electricity to China, the director said.

"These lines will have to be ultra high-voltage of up to 800 or 1,000 kilovolts, due to the long distance it will cover," he said.

State Grid plans to begin building the country's first pilot project of ultra high-voltage transmission line by the end of this year.

In the south, domestic rival China South Power Grid is also talking with countries including Viet Nam and Thailand for electricity exchanges.

The second-biggest grid company in China has also reached accord with Viet Nam to link the two neighboring countries through electricity lines and to build a coal-fired power plant at Nghi Son in Viet Nam, the company said.

(China Daily December 29, 2005)