Chinese state firm, SGCC to invest in east German electricity grid

Chinese state firm, SGCC to invest in east German electricity grid

China’s largest state-owned company, SGCC, plans to buy a stake in the German electricity grid, the two sides confirmed on Friday, 2018-02-09.

The Chinese grid operator plans to buy the 20-per-cent stake that Australian fund IFM Investors holds in the north German grid operator 50Hertz.

The former Vattenfall subsidiary 50Hertz operates the grid in eastern Germany and Hamburg. Its largest stakeholder is the Belgian power supply company Elia, which owns 60 per cent of 50Hertz. IFM owns the remaining 40 per cent.

50Hertz said that Elia has an option to pre-empt the Chinese purchase.

SGCC is responsible for operating the majority of the Chinese electricity grid.

The company has recently bought into the grids of several foreign countries, including Australia, Brazil, Greece and Italy.

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Obineme Ndubuisi Micheal, Technical | Creative and Senior News Writer, covering the entire value chain of the Energy Industry. Our publication covers the entire value chain of Renewable/Energy, Power, Mining, To get in touch, email: oilandgasrepublic@gmail.com