The reform of electricity power sector in the PR of China
Section snippets
Background
China dismantled the State Power Corporation on December 29, 2002 and set up 11 new companies in a move to end the corporation's monopoly of the power industry. The former State Power Corporation owned 46% of the country's electricity generation assets and 90% of the electricity supply assets.
The new companies include two power grid operators, namely the State Power Grid and China South Power Grid. Each of the five electricity generation companies own less than 20% of China's market. They will
Power industry regulatory systems: past and new trends
At the beginning of the 20th century, the American power industry was dominated by privately owned public power utilities with increasing vertically integrated management. These corporations controlled the power generation, transmission, and distribution markets. In brief, they developed a kind of monopoly in a “monopolized franchise sector.” In 1916, America established governmental regulatory agencies in its 33 states that supervised the public power utilities, issued franchise rights,
China's power regulatory system— the history of China's reform for the power industry
Most countries in the world have chosen to improve the efficiency of their power industries over the past 20 years, generally through deregulating and restructuring and thereby lowering power prices. Such market-oriented reform has tended to promote the integral economic competency of the power industry. In China, the power industry has gone through a series of changes since 1985, including: the termination of the monopoly of “exclusive investment in power generation,” which existed for over 30
Conclusion and future challenges in reform
Transition from a vertically integrated industry to a competitive and deregulated industry will be a long and complicated process. For this reason, power sector reforms in China should be implemented one-step at a time. The process should be divided into three phases:
Phase1: Separate power plants from transmission grids, establish transmission companies, and construct a competitive generation market;
Phase 2: Separate distribution from transmission, provide transmission networks open access to
References (0)
Cited by (119)
Missing data and the effects of market deregulation: Evidence from Chinese coal power
2024, International Journal of Industrial OrganizationIncome inequality, natural resources dependence and renewable energy
2024, Resources PolicyThe effect of electricity market reform on energy efficiency in China
2023, Energy PolicyEnergy subsidy reform and energy sustainability in Malaysia
2023, Economic Analysis and PolicyContributions of cleaner production and end-of-pipe treatment to NO<inf>x</inf> emissions and intensity reductions in China, 1997–2018
2023, Journal of Environmental ManagementRenewable and non-renewable electricity-growth nexus in Asia: The role of private power plants and oil price threshold effect
2022, Resources PolicyCitation Excerpt :Thus, the government can use this excess fund in others development expenditure (Zhang et al., 2008). Second, privatization will promote efficiency in electricity production (Xu and Chen, 2006; Wu, 2019; Asian Development Bank, 2015; Zhang et al., 2008). Privatizing electricity power plants is expected to raise electricity production efficiency by changing the allocation of property right that lead to different structure of incentives for management and hence to change in managerial behavior (Zhang et al., 2008).