National Grid(US:NGG) Zhong Guo Dian Li Bao·2026-01-14 08:13Core Insights - The report by the National Energy Administration analyzes the investment effectiveness of eight major power grid projects, highlighting issues such as low utilization rates and management irregularities Group 1: Project Performance and Management - All eight projects did not exceed budget estimates, but most had a high surplus rate compared to initial estimates, with some projects exceeding approved investments [2] - Several projects commenced construction without prior approval, indicating a lack of regulatory compliance in project management [5][7] - The report identifies that some projects have low transmission volumes compared to design expectations, leading to underutilization of infrastructure [3][4] Group 2: Cost Management and Efficiency - The report notes that the cost accounting and management methods currently in use hinder accurate pricing of transmission and distribution [8] - There is a significant surplus in project budgets, with most projects having a surplus rate between 10% and 20%, indicating a need for improved cost management practices [6] - Some projects have excessive standby equipment, leading to resource wastage, as seen in the Jin Su DC project where additional transformers were added without operational necessity [9] Group 3: Recommendations for Improvement - The report suggests enhancing the coordination between new energy development and existing power planning to improve project utilization rates [4] - It recommends that grid companies conduct thorough demand analysis and adjust project scales and timelines based on actual power demand [4] - The report emphasizes the need for stricter adherence to project approval processes and timely completion of environmental assessments [7]