Three Penalties in 40 Days: Shandong Electric Construction Company Repeatedly Violates Compliance Red Lines

Recently, China Power Construction Group Shandong Electric Power Construction First Engineering Co., Ltd. (referred to as “Shandong Electric Power First Company”) has repeatedly crossed the red lines of project quality and safety production. Over the course of more than a month, it has been penalized by energy regulatory authorities in East China, Central China, and South China.

The series of penalties began on February 3rd, when the company was fined 9,000 yuan by the East China Regulatory Bureau of the National Energy Administration for illegal subcontracting of power facility installation work; four days later, it was fined 25,000 yuan by the Central China Regulatory Bureau for failing to take measures to eliminate safety hazards during the Yanchang Petroleum Hubei Wuxue 2×660MW coal power project.

The latest penalty was issued on March 8th by the South China Regulatory Bureau of the National Energy Administration, documented in Administrative Penalty Decision No. 1 [2026] of the South China Energy Supervision. The investigation confirmed that the company, as the construction contractor for Units 3 and 4 expansion at the Lufeng Jiahuwan Power Plant in Guangdong, engaged in cutting corners and did not follow engineering design drawings and construction technical standards.

Notably, the penalty decision includes a report issued by the Power Engineering Quality Supervision Station titled “Report on the Steel Reinforcement Quantity of the Chimney Wall at Guangdong Lufeng Jiahuwan Power Plant Expansion Project,” as well as a rectification notice from the South China Energy Regulatory Bureau and a supervision letter from the Shanwei Development and Reform Bureau.

Data shows that the Phase II expansion project at Jiahuwan is a nationally key construction project invested in by Guangdong Baoli Hua New Energy Co., Ltd. (referred to as “Baoli New Energy (Rights Protection)”). The project has a planned total investment of 7.8 billion yuan. In June 2022, Baoli New Energy announced that, based on the province’s preferred coal power projects, the Guangdong Development and Reform Commission approved the addition of 2 million kilowatts of coal power capacity in Guangdong to the Phase II expansion of Units 3 and 4 at Lufeng Jiahuwan Power Plant, as part of the national “14th Five-Year Plan” for power construction.

According to the company’s official website, Shandong Electric Power First Company is one of the backbone enterprises of China Power Construction Group. The company has a registered capital of 1.608 billion yuan and holds over 30 qualifications, including Grade A general contracting for electric power engineering, Grade 1 general contracting for construction engineering, and Grade 1 professional contracting for transmission and transformation projects.