1. Existing Electricity Universal Service in China Yang Kun, Chief Engineer State Electricity Regulatory Commission of China (SERC) Quebec City, May 15, 2012 1

2. I. Overview of China’s Electricity Universal Service 1. Framework Power Enterprises Government Users Government ： Principle responsible party. Formulate policies, exercise regulation, pay for extra cost of universal service. Power Enterprises ： Responsible for implementation. Ensure grid development, improve power supply reliability and service. Users: M ainly households feedback implement regulate supplied provinces and autonomous regions supplied people State Grid Corporation China (SGCC) 26> 1billion China Southern Power Grid (CSG) 5 230 million 2

3. 2. Universal Service Practices in China a. Expand grid to lay out foundation for electricity universal service b. Enhance smart grid development to improve universal service c. Rural power grid to be renovated to align with urban power grid Expand grid coverage, ensure electricity access for users; improve grid reliability and make sure continuous power supply. By 2010, Chinese grid enterprises totally had 3.92 million km 220 kV transmission lines, 8.36 million km low voltage transmission lines, and 3620 GVA transformation capacity. In 2012, SGCC invested 300 billion RMB (47 billion USD) to develop smart grid to improve service quality of power supply. Between 1998 to 2011, the total 530 billion RMB (83 billion USD) was invested in rural power grid renovation and new lines in regions without electricity access. From 2006 to 2010, 6.5 million people, who had no electricity access, were provided with power through electricity infrastructure projects. 3

4. d. Actively develop renewable energy to provide power for production and living in rural areas e. Reinforce supervision and regulation over power supply 2006-2010: Provided power to 900 thousand people in rural areas with small hydropower units. Implemented Small Hydro Power (SHP) replacing fuel program and constructed small hydro power plants with 210 MW installed capacity, which provided cheap power to over 200 thousand rural households. Installed 2000 MW direct-fired combustion power plants which are using residual biomass from agriculture and forestry. Established over 800 solar PV stations and installed more than 100 thousand household- use solar PV systems, to provide power to residents in remote areas. Power supply companies set up service hot line to provide services of enquiring, consultation, maintenance request etc., which improved power supply service and operation efficiency. Electricity Regulator SERC opens Complaint Hotline to receive complaints and reports regarding service quality of power suppliers. 4

5. 3. Achievements in China’s Electricity Universal Service Indicator1998200220052010 Electrification Rate ： Township99.2099.5499.9099.72* Village98.1098.7199.8099.76* Household86.8798.4899.4099.83 Reliability on Service in Total 94.5599.3099.3899.63 Voltage Qualification Rate ： 85.1794.2495.8097.68 Rural Line Loss Rate (under 220kV) ： 17.0212.1112.005.98 Power Supply Service Indicator in Rural Area 5 Note: data is for SGCC, * refers to expanded serving areas

6. II. The Main Tasks and Measures for China by 2015 1. Tasks 2. Goal 3.Measures a. Robust power grid featured with Smart Grid b. Green Energy Demonstration County Project c. Accelerate the implementation of the New Round Renovation and Upgrade of Rural Power Grid d. Actively develop renewable energy in rural areas e. Improve universal service structure By 2011, more than 3.7 million people still had no electricity access; annual electricity consumption was only 316 kWh per capita for nearly 700 million rural people; and the rural power grid was still underdeveloped. By 2015, strive to fully solve power supply problems (access + capacity) for all the above mentioned 3.7 million by expanding power grid coverage and utilizing small-scale distributed renewable energy. 6

7. Thanks for your attention! 7