Abstract
This final chapter seeks to summarise some of the key issues emerging from the previous chapters on the prospects for the reform of the Chinese electric power sector. In Sect. 5.1 we begin with some of the high-level messages from the previous four chapters. In Sect. 5.2 we comment on recent developments with the provincial power reform pilots across China. We then move on and make some suggestions for immediate next steps in Sect. 5.3. In Sect. 5.4 we discuss the fundamental issues that are raised in China by power sector reform. In Sect. 5.5 we end with some key messages for different stakeholder groups within the power sector, namely, policymakers, regulators, generators, retailers and the grid companies (specifically, State Grid Company of China [SGCC] and China Southern Grid [CSG]).
The author would like to thank Hao Chen for his help with the data in this chapter.
This is a preview of subscription content, access via your institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
S ee Rawski (2019, p. 350).
- 2.
S ee Alva and Li (2018, p. 21).
- 3.
Se e Alva and Li (2018, p. 38).
- 4.
NDRC (2019), Opinions on Deepening the Electricity Spot Market Construction in Pilot Areas. Available at: http://www.ndrc.gov.cn/gzdt/201908/t20190807_943964.html
- 5.
Source: EIA (2019).
- 6.
35 kV+ customer in Guangzhou. Source: CEIC. US $1 = 6.1428 CNY in 2014 and US $1 = 6.62 CNY in 2018. Note: the figures are difficult to get on a consistent basis.
- 7.
Assuming the 2018 annual bilateral contract discount of 0.0782 RMB/kWh.
- 8.
Profits at four of the Big five retailers—Huan eng, Huadian, State Power Investments and Datang—fell from $2461 m in 2016 to $967 m in 2019 (Source: Fortune Global 500). Guodian had merged with another major energy company (Shen hua) in the interim, making it difficult to compare its profits.
- 9.
Profits at SGCC and CSG were $8174 m and $1782 m in 2019 against $10,201 m and $2223 m in 2016 (Source: Fortune Global 500).
- 10.
See Alva and Li (2018, pp. 43–44) who discuss the North-east ancillary services market covering Liaoning, Jilin and Heilongjiang provinces.
- 11.
See Pollitt (2019) on the development of the EU single electricity market.
- 12.
In 2018, according to the international polling firm Edelman, general population trust in the energy sector was 88% in China, against 39% in Australia, 43% in the UK, 63% in the US (see Edelman 2018).
- 13.
In 2018, according to the international polling firm Edelman, general population trust in government was 84% in China, against 35% in Australia, 36% in the UK, 33% in the US (see Edelman 2018).
- 14.
If the marginal fuel in the Chinese power system is coal and there is roughly 1 kg of CO2 emissions per kWh delivered, this gives an increased cost of US $0.025 per kWh (the industrial price in 2014 was US $0.1068 per kWh).
- 15.
See Alva and Li (2018, p. 51).
- 16.
See, for example, Sioshansi (2019) for a recent perspective on this.
References
AER. (2018). State of the energy market 2018. Melbourne: Australian Energy Regulator.
Alva, H. A. C., & Li, X. (2018). Power sector reform in China: An international perspective. Paris: IEA Publications.
Edelman. (2018). 2018 Edelman trust barometer: Attitudes toward energy in a polarized world. Available at: https://www.slideshare.net/EdelmanInsights/2018-edelman-trust-barometer-attitudes-toward-energy-in-a-polarized-world
EIA. (2019). Electric power monthly with data for June 2019. Washington, DC: US Energy Information Agency.
FERC. (2019). State of the markets report 2018. Washington, DC: Federal Energy Regulatory Commission.
Monitoring Analytics LLC. (2019a). State of the market report for PJM, Volume I: Introduction. Eagleville, PA: Monitoring Analytics LLC.
Monitoring Analytics LLC. (2019b). State of the market report for PJM, Volume II: Detailed analysis. Eagleville, PA: Monitoring Analytics LLC.
NBS. (2018). China electric power yearbook 2018. Beijing: China Electric Power Press.
NDRC. (2019). Opinions on deepening the electricity spot market construction in pilot areas. Available at: http://www.ndrc.gov.cn/gzdt/201908/t20190807_943964.html
Ofgem. (2018). State of the energy market 2018. London: Ofgem.
Pollitt, M. (2019). The single market in electricity: An economic assessment. Review of Industrial Organization, 55(1), 89–109.
Rawski, T. G. (2019). Growth, upgrading, and excess cost in China’s electric power sector. In L. Brandt & T. G. Rawski (Eds.), Policy, regulation, and innovation in China’s electricity and telecom industries (pp. 304–372). Cambridge: Cambridge University Press.
Sioshansi, F. P. (2016). What is the future of the electric power sector? In F. P. Sioshansi (Ed.), Future of utilities – Utilities of the future: How technological innovations in distributed resources will reshape the electric power sector (pp. 3–23). London: Elsevier.
Sioshansi, F. (Ed.). (2019). Consumer, prosumer, prosumager: How service innovations will disrupt the utility business model. London: Academic Press.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Pollitt, M.G. (2020). Prospects for Reform of China’s Electric Power Sector. In: Reforming the Chinese Electricity Supply Sector. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-39462-2_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-39462-2_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-39461-5
Online ISBN: 978-3-030-39462-2
eBook Packages: Business and ManagementBusiness and Management (R0)