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.
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S ee Rawski (2019, p. 350).
S ee Alva and Li (2018, p. 21).
Se e Alva and Li (2018, p. 38).
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
Source: EIA (2019).
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.
Assuming the 2018 annual bilateral contract discount of 0.0782 RMB/kWh.
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.
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).
See Alva and Li (2018, pp. 43–44) who discuss the North-east ancillary services market covering Liaoning, Jilin and Heilongjiang provinces.
See Pollitt (2019) on the development of the EU single electricity market.
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).
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).
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).
See Alva and Li (2018, p. 51).
See, for example, Sioshansi (2019) for a recent perspective on this.
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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
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-39461-5
Online ISBN: 978-3-030-39462-2