Analysis of Global Power Market
Analysis of China's Power Operation Market
Development Trends of Power Supply
1
Restructuring of
Power Supply
The concerning situation of climate change and the intensified control of air pollution required the
development of clean energy power plants. Meanwhile, power generators are also dedicated to
improve the electricity efficiency, reduce the cost of electricity generation and increase return on
investment of power plant through technology innovation.
Structural Reform of
2 the Coal-fired Power
Sector
Prioritised Dispatch
3
of Power Generation
•
In order to reduce the overcapacity in the coal-fired power industry, China has issued several policies to
promote the supply-side reform in the coal-fired power industry. Many of the small coal-fired power
plants tend to be phased out. The newly installed coal-fired power capacity is under strict control.
Additionally, China has been facilitating the implementation of emission reduction policies.
•
Furthermore, particularly in southwest China, in order to deal with and better utilise the abundant
hydropower capacity, central government, inclusive of NDRC and NEA, issued regulatory guidance
(such as Notice on Promoting Hydropower Consumption in Southwest China (ĦLKALMA
promoting the optimised allocation of hydropower resources and prioritising hydropower
generation. For instance, regarding the cross-region power supply and power receiving, hydropower in
southwest China shall enjoy certain level of priorities for power generation and transmission. Moreover,
power grid constructions for hydropower transmission from southwest to the rest of China (Guangdong,
Guangxi and Jiangxi provinces) are encouraged and emphasised to ensure the unimpeded power
transmission in future.
FROST & SULLIVAN
Source: Frost & Sullivan
61View entire presentation