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The commission said in a statement published on its website that the first phase of the project is expected to be completed by the end of 2011 and will improve electricity generation, transmission and distribution.
When the grid is finished, electricity derived from renewable energy sources will supply 25% of the amount the country consumes, according to the statement.
China aims to increase its use of clean forms of energy such as wind power and solar power to 15% of its total energy needs by 2020 from 8.3% at the end of 2009.
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