Comparative Study of Successful Strategies and Approaches to Transnational Investment in the Electric Transmission Sector

Since 2009, State Grid International Development Co., Ltd, the international subsidiary of State Grid Corporation of China, has been actively investing in overseas transmission assets and actively looking for additional opportunities. The Capstone team undertook a review and analysis of electricity transmission asset acquisitions by State Grid International Development Co. In particular, the focus is on the transmission companies that State Grid has already invested in or acquired, including ElectraNet of Australia, State Grid Brazil Holdings of Brazil, the National Grid Corporation of the Philippines and REN of Portugal. The review of these acquisitions includes a regulatory overview of transnational investment and the rate setting mechanism. 

As a part of the research, the team evaluated the company's overseas acquisition strategy and accompanying regulatory environment in Australia, Brazil, Portugal, and Philippines. The team also conducted in depth case studies of Spring S.p.A., ISA Colombia, and Terna to determine and evaluate international asset management and acquisition strategies. The team traveled to Sao Paolo and Rio de Janiero to meet with electricity sector consultants and officials from State Grid Brazil Holdings to gain deeper insight into the management of international transmission investments. Based on trends determined and investing objectives defined,  the team analyzed the global investment climate, presenting the concluding analysis with a detailed review of market opportunities and suggestion of possible new international markets.