China and Russia, the world's two major energy consumers and producers, are preparing to expand their electricity transfer program as a move to enhance energy safety, according to China Daily, citing industry insiders familiar with the project.

The two countries are planning to build several power transmission lines across their borders, involving investment of "multi billion yuan," according to an official who declined to be named in the report.

Currently, no technology barrier exists in building such projects, and domestic companies are in cooperation with foreign power giants such as AREVA for feasibility studies on some electricity lines, Hu Xuehao, an expert with China Electric Power Research Institute, told the newspaper.

Sources with the State Grid, China's largest grid company, said that a long-term deal had been finalized between the State Grid and Russia, according to which Russia will transfer 3.6 to 4.3 billion kwh of power to China from 2008 to 2010, 18 billion kwh from 2010 to 2015, and 60 billion kwh from then on.

China Electricity Council forecasts the country's power consumption will grow by 5 per cent in 2009.

Analysts believe the fall in Russia's energy demand resulted by the economic downturn will prompt the nation's power companies to export surplus electricity.

Russia will see a 4.5 percent decrease in its overall power consumption in 2009, according to Russian media reports.