Analysis of Global Power Market
Analysis of China's Power Operation Market
Market Drivers
Drivers of Power Operation Market, China
Main Drivers
Influence
(1-2 years)
Influence
(3-5 years)
1
Continuous Growth of Economy and Power Demand
High
High
2 Industrial Upgrading and Changes in Industrial Power Structure
High
High
3
Development of Power Transmission
High
Medium
4
Structural Reform of the Coal-fired Power Sector
High
Medium
5
Favorable Financial Policies for Hydropower Sector
Medium
Medium
6
Development of NEV Market and Rail Transit
Medium
High
7
Construction of Data Centre
Drivers
Medium
Description
High
DRIVERS
XEDS
Continuous Growth
of Economy and
Power Demand
Industrial Upgrading
and Changes in
Industrial Power
Structure
Development of
Power Transmission
Structural Reform of
the Coal-fired Power
Sector
The power consumption has positive correlation with the economic conditions. With the increasing of GDP and growing demand from
industrial production, the power consumption kept growing in the last five years. In order to meet the demand from industrial production, the
power consumption increased corresponding. Additionally, with the improvement of residents' life quality, the household appliance,
especially high-power appliance, become increasingly popular in China, which leads to the growth of residential power consumption.
➤ In recent years, the driving force of the industrial sectors has gradually turned to intelligent manufacturing, high-end manufacturing. In
addition, under the promotion of the government, China's tertiary industry has also ushered in a boom. Driven by the upgrading of industries
and the transformation of industrial structure, the demand for new power consumption continues to grow.
➤ China is supporting the construction of cross-region power transmission including UHV transmission to achieve the balance of power supply
and demand between East and West China. In addition, the structure of power transmission network will be further improved to enhance the
security and strengthen cross-provincial connection. The development of power transmission infrastructure will stimulate the cross-region
power demand.
In order to alleviate the risk of 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 self-supplied power plants and small coal-fired power plants tend to be phased out. The
newly installed coal-fired power capacity is under strict control. As a result, the average utilisation hours of the coal-fired power plants
increased in recent years which is conducive to a healthy development of Chinese power industry.
Source: Frost & Sullivan
FROST
&
SULLIVAN
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