Electric power industry in China
Encyclopedia
The People's Republic of China's electric power industry has changed dramatically since the early 1990s to become the world's second-largest electricity consumer, after the United States
. In April 1996, an Electric Power Law was implemented, a major event in China's electric power industry. The law set out to promote the development of the electric power industry, to protect legal rights of investors, managers and consumers, and to regulate generation, distribution and consumption.
China has abundant energy. The country has the world's third-largest coal reserves and massive hydroelectric resources. But there is a geographical mismatch between the location of the coal fields in the north-east (Heilongjiang
, Jilin
, and Liaoning
) and north (Shanxi
, Shaanxi
, and Henan
), hydropower in the south-west (Sichuan
, Yunnan
, and Tibet
), and the fast-growing industrial load centers of the east (Shanghai
-Zhejiang
) and south (Guangdong
, Fujian
).
(WTO). Power companies, faced with the pressure of competition, are looking to transform their communications infrastructure to boost efficiency and productivity.
China's electric power industry has continuously maintained a high growth rate. By the end of 2000, the total installed power was 315 GW, an increase of 16.5 GW or 5.5% compared to 1999. Hydropower amounted to 77 GW, accounting for 15 %; thermal power amounted to 235 GW, accounting for 83 %.and nuclear power amounted to 2GW, accounting for 1 % of installed capacity. Electricity generation reached 1400 TWh, 13.5 % more than in the previous year. In 1999, the construction investment of the electric power industry reached 14 billion US dollars, of which 49.3 % were dedicated to thermal power, 12.5 % to hydropower 6.4 % to nuclear 26.1 %, to transmission lines and transformers and 5.7 %.to other investments.
In 2007, China’s energy supply and demand both surged ahead at an amazing pace in the shadow of its 11.4% GDP growth. Total energy consumption increased by 7.8% equivalent to 2.65 billion tons of standard coal while the amount of electric power generated grew by 14.1% in 2007, to 3263.2 TWh. Thermal power still accounts for the bulk of the energy generated, 83%, followed by 14% from hydro, 2% from nuclear and less than 0.1% from wind power.
By the end of 2007, China's total installed capacity amounted to 713 million kilowatts. China's power demand continued a steady growth momentum in 2008, up 13% year on year. With the shutdown of small thermal power generating units and the slowdown of investment in power generation, the high growth rate of China's newly increased installation capacity in 2008 will decelerate, and the rate is expected to reach 11.8% year on year.
By the end of 2010, it is expected that the total installed capacity will reach 900 GW. Annual generation of electricity will exceed 3700 TWh. By the end of 2007, the total installed capacity was 713.29 GW,annual generation of electricity was 3255.9 TWh.
The structure of China's power industry is expected to remain unchanged for a long time. At present, China's hydropower output amounts to 13.88 percent of the national total, nuclear power output accounts for 1.94 percent and wind power output amounts to 0.26 percent, while coal-fired power output amounts to at least 78% of the national total. China's coal-fired power generation will be in a stage of stable development until at least 2020, and China's installed capacity of coal-fired power generating units will remain at more than 70 percent.
In the long term, China's power industry, boosted by accelerated process of industrialization and urbanization
, is projected to have an average annual growth rate of 6.6% to 7.0% in the next ten years. This indicates that the power industry will require a great deal of investment. Currently, investment in hydropower
, wind power
and nuclear power
is increasing. However, investment in coal-fired power generation still ranks first.
To end the State Power Corporation's (SPC) monopoly of the power industry, China's State Council dismantled the corporation in December 2002 and set up 11 smaller companies. SPC had owned 46% of the country's electrical generation assets and 90% of the electrical supply assets. The smaller companies include two electric power grid operators, five electric power generation companies and four relevant business companies. Each of the five electric power generation companies owns less than 20% (32 GW of electricity generation capacity) of China's market share for electric power generation. Ongoing reforms aim to separate power plants from power-supply networks, privatize a significant amount of state-owned property, encourage competition, and revamp pricing mechanisms.
It is expected that the municipal electric power companies will be divided into electric power generating and electric power supply companies. A policy of competition between the different generators will be implemented in the next years .
that due to increased demand and price controls shortages of electricity existed with additional shortages being anticipated. The government-regulated price electricity could be sold for had not matched rising prices for coal.
It seems likely the cost of power will need to rise substantially over the medium term (2–5 years) to curb wasteful energy consumption
and slow the rate of growth in electricity demand. In theory, the government could raise power costs by a similar amount across the whole of China in the interests of inter-regional equity.
to meet booming demand from the eastern coastal provinces. China is planning for smart grid and related Advanced Metering Infrastructure.
Long distance inter-regional transmission have been implemented by using ultra-high voltages (UHV) of 800kV, based on an extension of technology already in use in other parts of the world.
The government plans as many as eight long-distance UHV lines by 2015 and 15 by 2020.
Following research and testing, SGCC has announced construction of the first long-distance UHV line from Sichuan
, which is rich in hydro-electric potential, to the eastern load center of Shanghai
.
Shanghai already receives hydro-electric power from the massive Three Gorges Dam
on the Changjiang
(Yangtze) at Sandouping
in Hubei
province. But the new DC 800kV UHV line would enable it to receive power from twice as far west from the Xiangjiaba dam on the Jinsha river
(a tributary of the Changjiang much further upstream).
Xiangjiaba will have total generating capacity of 6,400 MW. When completed, the nearby Xilodu Dam will add a further 12,600 MW (about 55 percent of the size of the planned Three Gorges output), making it the world's third-largest hydro-electric dam, ranking after the Three Gorges and Brazil's Itaipu.
Xilodu and Xiangjiaba are two of a series of massive new hydro projects that the government plans in south-western and western China to take advantage of the massive run off from the Himalayas and the Tibet plateau.
SGCC plans to bring a single pole of the Xiangjiaba-Shanghai line into commercial operation within two years (2010) and the second pole a year later (2011). SGCC plans to complete a total of 10 UHV projects by 2015 and 15 by 2020. http://www.sgcc.com.cn/ywlm/pnews/91705.shtml
In most cases, these will bring power from massive new hydro facilities in south-western China to the industrial and residential centers of the east.
in the Eleventh Five-Year Plan has set a 300GW target for 2020. Due to China's scarcity of fossil fuels and the government's preference for energy independence, hydropower is an attractive option.
Most of China's hydropower stations are located Central and Southwestern China, in particular in Sichuan and Yunnan provinces, where two thirds of China's untapped hyro capacity is located. The West-to-East Transmission program (xidian dongsong), which is a key component of China’s long-term energy strategy, plans to have a grid of UHVDC transmission lines carry bulk loads from 13 designated hydropower bases in Southwest and Western China over several thousand kilometers to the electricity-hungry coastal provinces. These hydropower bases hold 69% of China’s total exploitable capacity and as of 2008, about 180 middle and large-scale dams are currently under construction there.
Hydropower in China has been touted as a renewable and clean energy source, but this masks the fact that large dams, such as the Three Gorges Dam
or the Xiluodu dam on the lower Jinsha River, have had environmental impacts on the areas surrounding dam reservoirs. Erosion, flooding of valuable farmland, and destruction of fish breeding habitats have been typical problems. Moreover, about 15 million people have been relocated due to dam construction since 1949 and often these uprooted local people, in particular in Sichuan and Yunnan, tend to be poor and uneducated farmers, who are strongly attached to their ancestral land and have found it difficult to adapt to the more urban areas they have been resettled to. Growing media and NGO attention on the ecological and social impacts of hydropower and efforts in the central government in recent years to improve the regulatory framework of hydropower development and protect the interests of minority stakeholders, such as displaced locals, indicate that hydropower may eventually become more environmentally and socially sustainable.
Johann Hari
, writing in the Guardian
in 2011, claims that by 1980 "2796 dams had failed, with combined death toll of 240,000 people. After the construction of the Three Gorges dam, it soon began to trigger landslides and deadly waves. The rivers feeding it were not able to flush out garbage – so the water became carcinogenic and threatened people in 186 cities. But the most startling effect followed the Zipingpu dam – which may well have caused the Sichuan earthquake."
Major hydropower corporations
Northern and north-eastern China relies heavily on thermal generation from the local coalfields. Northern China will remain reliant on increasingly expensive and polluting thermal generation.
amount of China's listed power companies, the top three regions are Guangdong
province, Inner Mongolia
Autonomous Region and Shanghai
, whose investment ratios are 15.33%, 13.84% and 10.53% respectively, followed by Sichuan
and Beijing
.
China's listed power companies invest mostly in thermal power, hydropower
and thermoelectricity, with their investments reaching CNY216.38 billion, CNY97.73 billion and CNY48.58 billion respectively in 2007. Investment in gas exploration and coal mining
follow as the next prevalent investment occurrences.
Major players in China's electric power industry include:
The five majors, and their listed subsidiaries:
The five majors are all SOE
s directly administered by SASAC. Their listed subsidiaries are substantially independent, hence counted as IPP
s, and are major power providers in their own right. Typically each of the big 5 has about 10% of national installed capacity, and their listed subsidiary an extra 4 or 5% on top of that.
Additionally two other SOEs also have listed IPP subsidiaries:
Secondary companies:
Nuclear and hydro:
Grid operators include:
Yearbook
Energy use in the United States
The United States is the 2nd largest energy consumer in terms of total use in 2010 . The U.S. ranks seventh in energy consumption per-capita after Canada and a number of small countries....
. In April 1996, an Electric Power Law was implemented, a major event in China's electric power industry. The law set out to promote the development of the electric power industry, to protect legal rights of investors, managers and consumers, and to regulate generation, distribution and consumption.
China has abundant energy. The country has the world's third-largest coal reserves and massive hydroelectric resources. But there is a geographical mismatch between the location of the coal fields in the north-east (Heilongjiang
Heilongjiang
For the river known in Mandarin as Heilong Jiang, see Amur River' is a province of the People's Republic of China located in the northeastern part of the country. "Heilongjiang" literally means Black Dragon River, which is the Chinese name for the Amur. The one-character abbreviation is 黑...
, Jilin
Jilin
Jilin , is a province of the People's Republic of China located in the northeastern part of the country. Jilin borders North Korea and Russia to the east, Heilongjiang to the north, Liaoning to the south, and Inner Mongolia to the west...
, and Liaoning
Liaoning
' is a province of the People's Republic of China, located in the northeast of the country. Its one-character abbreviation is "辽" , a name taken from the Liao River that flows through the province. "Níng" means "peace"...
) and north (Shanxi
Shanxi
' is a province in Northern China. Its one-character abbreviation is "晋" , after the state of Jin that existed here during the Spring and Autumn Period....
, Shaanxi
Shaanxi
' is a province in the central part of Mainland China, and it includes portions of the Loess Plateau on the middle reaches of the Yellow River in addition to the Qinling Mountains across the southern part of this province...
, and Henan
Henan
Henan , is a province of the People's Republic of China, located in the central part of the country. Its one-character abbreviation is "豫" , named after Yuzhou , a Han Dynasty state that included parts of Henan...
), hydropower in the south-west (Sichuan
Sichuan
' , known formerly in the West by its postal map spellings of Szechwan or Szechuan is a province in Southwest China with its capital in Chengdu...
, Yunnan
Yunnan
Yunnan is a province of the People's Republic of China, located in the far southwest of the country spanning approximately and with a population of 45.7 million . The capital of the province is Kunming. The province borders Burma, Laos, and Vietnam.Yunnan is situated in a mountainous area, with...
, and Tibet
Tibet
Tibet is a plateau region in Asia, north-east of the Himalayas. It is the traditional homeland of the Tibetan people as well as some other ethnic groups such as Monpas, Qiang, and Lhobas, and is now also inhabited by considerable numbers of Han and Hui people...
), and the fast-growing industrial load centers of the east (Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
-Zhejiang
Zhejiang
Zhejiang is an eastern coastal province of the People's Republic of China. The word Zhejiang was the old name of the Qiantang River, which passes through Hangzhou, the provincial capital...
) and south (Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
, Fujian
Fujian
' , formerly romanised as Fukien or Huguing or Foukien, is a province on the southeast coast of mainland China. Fujian is bordered by Zhejiang to the north, Jiangxi to the west, and Guangdong to the south. Taiwan lies to the east, across the Taiwan Strait...
).
Recent history
China's power industry has become increasingly competitive over the past three years as a result of government-initiated structural reforms and China's entry into the World Trade OrganizationWorld Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
(WTO). Power companies, faced with the pressure of competition, are looking to transform their communications infrastructure to boost efficiency and productivity.
China's electric power industry has continuously maintained a high growth rate. By the end of 2000, the total installed power was 315 GW, an increase of 16.5 GW or 5.5% compared to 1999. Hydropower amounted to 77 GW, accounting for 15 %; thermal power amounted to 235 GW, accounting for 83 %.and nuclear power amounted to 2GW, accounting for 1 % of installed capacity. Electricity generation reached 1400 TWh, 13.5 % more than in the previous year. In 1999, the construction investment of the electric power industry reached 14 billion US dollars, of which 49.3 % were dedicated to thermal power, 12.5 % to hydropower 6.4 % to nuclear 26.1 %, to transmission lines and transformers and 5.7 %.to other investments.
In 2007, China’s energy supply and demand both surged ahead at an amazing pace in the shadow of its 11.4% GDP growth. Total energy consumption increased by 7.8% equivalent to 2.65 billion tons of standard coal while the amount of electric power generated grew by 14.1% in 2007, to 3263.2 TWh. Thermal power still accounts for the bulk of the energy generated, 83%, followed by 14% from hydro, 2% from nuclear and less than 0.1% from wind power.
By the end of 2007, China's total installed capacity amounted to 713 million kilowatts. China's power demand continued a steady growth momentum in 2008, up 13% year on year. With the shutdown of small thermal power generating units and the slowdown of investment in power generation, the high growth rate of China's newly increased installation capacity in 2008 will decelerate, and the rate is expected to reach 11.8% year on year.
By the end of 2010, it is expected that the total installed capacity will reach 900 GW. Annual generation of electricity will exceed 3700 TWh. By the end of 2007, the total installed capacity was 713.29 GW,annual generation of electricity was 3255.9 TWh.
The structure of China's power industry is expected to remain unchanged for a long time. At present, China's hydropower output amounts to 13.88 percent of the national total, nuclear power output accounts for 1.94 percent and wind power output amounts to 0.26 percent, while coal-fired power output amounts to at least 78% of the national total. China's coal-fired power generation will be in a stage of stable development until at least 2020, and China's installed capacity of coal-fired power generating units will remain at more than 70 percent.
In the long term, China's power industry, boosted by accelerated process of industrialization and urbanization
Urbanization
Urbanization, urbanisation or urban drift is the physical growth of urban areas as a result of global change. The United Nations projected that half of the world's population would live in urban areas at the end of 2008....
, is projected to have an average annual growth rate of 6.6% to 7.0% in the next ten years. This indicates that the power industry will require a great deal of investment. Currently, investment in hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
, wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
and nuclear power
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
is increasing. However, investment in coal-fired power generation still ranks first.
Government
Before 1994 electricity supply was managed by electric power bureaus of the provincial governments. Now utilities have seen been managed by corporations outside of the government administration structure.To end the State Power Corporation's (SPC) monopoly of the power industry, China's State Council dismantled the corporation in December 2002 and set up 11 smaller companies. SPC had owned 46% of the country's electrical generation assets and 90% of the electrical supply assets. The smaller companies include two electric power grid operators, five electric power generation companies and four relevant business companies. Each of the five electric power generation companies owns less than 20% (32 GW of electricity generation capacity) of China's market share for electric power generation. Ongoing reforms aim to separate power plants from power-supply networks, privatize a significant amount of state-owned property, encourage competition, and revamp pricing mechanisms.
It is expected that the municipal electric power companies will be divided into electric power generating and electric power supply companies. A policy of competition between the different generators will be implemented in the next years .
Problems
In Spring, 2011, it was reported by The New York TimesThe New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
that due to increased demand and price controls shortages of electricity existed with additional shortages being anticipated. The government-regulated price electricity could be sold for had not matched rising prices for coal.
- Price caps encourage wasteful use of cheap electricity and therefore producers are struggling to generate enough power overall
- China is unable to mine enough coal or transport it in sufficient quantities to meet demand
- The enormous volume of coal burning generates massive pollution
- Regional power shortages occur frequently when generation drops in one province or region and the lack of long-distance power transmissionPower transmissionPower transmission is the movement of energy from its place of generation to a location where it is applied to performing useful work.Power is defined formally as units of energy per unit time...
capacity means that power cannot be routed in from other regions where there is surplus capacity
It seems likely the cost of power will need to rise substantially over the medium term (2–5 years) to curb wasteful energy consumption
Energy consumption
Energy consumption is the consumption of energy or power. It is covered in the following articles and categories:* World energy consumption* Domestic energy consumption* Fuel efficiency in transportation* Electric energy consumption* Electricity generation...
and slow the rate of growth in electricity demand. In theory, the government could raise power costs by a similar amount across the whole of China in the interests of inter-regional equity.
- China's power transmission system remains under-developed. There is no national grid. Instead there are six regional grids—five managed by the giant State Grid CorporationState Grid CorporationState Grid Corporation of China is the largest electric power transmission and distribution company in China and in the world, headquartered in Xicheng District, Beijing...
(north, north-east, east, central and north-west) and an independent grid (south) managed by the South China State Grid Corp (covering the light manufacturing hub around Guangzhou-Shenzhen and the inland areas of Guangdong, Guangxi and Guizhou).- Northern areas experience shortages in winter due to increased heating demand and problems with coal deliveries.
- Eastern and southern areas are prone to shortages in late spring/early summer as temperatures and airconditioning demand rise, while reservoir levels and hydro output fall until the arrival of the summer rains in July and August. Guangdong and other southern provinces import substantial quantities of expensive fuel oil and diesel to run additional generation capacity to cope with the resulting power gap.
- The lack of a unified national grid system hampers the efficiency of power generation nationwide and heightens the risk of localised shortages.
- Even within these grids transmission capacity is limited. Many towns and enterprises rely on local off-grid generating plants. More importantly, inter-connections between the grids are weak and long distance transmission capacity is small.
- The country's limited internal transport capacity risks being overwhelmed by the need to move record quantities of coal from the coal fields of the north and north-east to power generators in the central, eastern and southern areas.
- The rail system has struggled to deliver adequate quantities of coal to the generators. Ice storms, flooding or droughts which disrupt rail and river deliveries quickly lead to shortages and power outages.
- There are concerns about the quality and reliability of Chinese boilers, turbines and generators exported to IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
compared with Indian or Western equipment.
Energy Infrastructure
The central government has made creation of a unified national grid system a top economic priority to improve the efficiency of the whole power system and reduce the risk of localised energy shortages. It will also enable the country to tap the enormous hydro potential from western ChinaWestern China
Western China , refers to the western part of China. In the definition of the Chinese government, Western China covers six provinces: Gansu, Guizhou, Qinghai, Shaanxi, Sichuan, and Yunnan; one municipality: Chongqing; and three autonomous regions: Ningxia, Tibet, and Xinjiang.-Administrative...
to meet booming demand from the eastern coastal provinces. China is planning for smart grid and related Advanced Metering Infrastructure.
Ultra-high-voltage transmission
The main problem in China is the voltage drop when power is sent over very long distances from one region of the country to another.Long distance inter-regional transmission have been implemented by using ultra-high voltages (UHV) of 800kV, based on an extension of technology already in use in other parts of the world.
The government plans as many as eight long-distance UHV lines by 2015 and 15 by 2020.
- HVDC Gezhouba -
- HVDC Three Gorges-GuangdongHVDC Three Gorges-GuangdongThe HVDC Three Gorges – Guangdong is a 940 kilometre-long bipolar HVDC transmission line in China for the transmission of electric power from the Three Gorges power plant to the area of Guangdong. The powerline went into service in 2004. It runs from the static inverter station Jingzhou near...
Following research and testing, SGCC has announced construction of the first long-distance UHV line from Sichuan
Sichuan
' , known formerly in the West by its postal map spellings of Szechwan or Szechuan is a province in Southwest China with its capital in Chengdu...
, which is rich in hydro-electric potential, to the eastern load center of Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
.
Shanghai already receives hydro-electric power from the massive Three Gorges Dam
Three Gorges Dam
The Three Gorges Dam is a hydroelectric dam that spans the Yangtze River by the town of Sandouping, located in the Yiling District of Yichang, in Hubei province, China...
on the Changjiang
Changjiang
Changjiang may refer to:*Changjiang River, or Yangtze River, in China*Changjiang Li Autonomous County, in Hainan, China*Changjiang District, in Jingdezhen, Jiangxi, China*Changjiang Scholars Program, higher education development program in China...
(Yangtze) at Sandouping
Sandouping
Sandouping is a town in Yiling District of Yichang prefecture-level city in the Chinese province of Hubei. It is located on the right bank of the Yangtze River, next to Yiling District's border with Zigui County to the west...
in Hubei
Hubei
' Hupeh) is a province in Central China. The name of the province means "north of the lake", referring to its position north of Lake Dongting...
province. But the new DC 800kV UHV line would enable it to receive power from twice as far west from the Xiangjiaba dam on the Jinsha river
Jinsha River
Jinsha River is the westernmost of the major headwater streams of the Yangtze River, southwestern China.Its headwaters rise in the Wulan and Kekexili ranges in western Qinghai province, to the south of the Kunlun Mountains, and on the northern slope of the Tanggula Mountains on the border of the...
(a tributary of the Changjiang much further upstream).
Xiangjiaba will have total generating capacity of 6,400 MW. When completed, the nearby Xilodu Dam will add a further 12,600 MW (about 55 percent of the size of the planned Three Gorges output), making it the world's third-largest hydro-electric dam, ranking after the Three Gorges and Brazil's Itaipu.
Xilodu and Xiangjiaba are two of a series of massive new hydro projects that the government plans in south-western and western China to take advantage of the massive run off from the Himalayas and the Tibet plateau.
SGCC plans to bring a single pole of the Xiangjiaba-Shanghai line into commercial operation within two years (2010) and the second pole a year later (2011). SGCC plans to complete a total of 10 UHV projects by 2015 and 15 by 2020. http://www.sgcc.com.cn/ywlm/pnews/91705.shtml
In most cases, these will bring power from massive new hydro facilities in south-western China to the industrial and residential centers of the east.
Hydropower
China's installed hydro capacity in the first half of 2009 was 172GW and constituted about 24% of total power generation capacity. In 2008, hydropower generated 563TWh, which was equivalent to 16% of China's total and 85% of primary electricity generation. As China's potential hydropower capacity (estimates range up to 600GW, but currently the technically exploitable and economically feasible capacity is around 400GW) is only about 25-30% utilized, there remains much space for further hyro development. In comparison, hydro utilization in the U.S. currently is 80% and in Norway, Iceland, and other countries it is at over 90%. Several new units are scheduled to still come online in China in 2009 and the National Development and Reform CommissionNational Development and Reform Commission
The National Development and Reform Commission , formerly State Planning Commission and State Development Planning Commission, is a macroeconomic management agency under the Chinese State Council, which has broad administrative and planning control over the Chinese economy...
in the Eleventh Five-Year Plan has set a 300GW target for 2020. Due to China's scarcity of fossil fuels and the government's preference for energy independence, hydropower is an attractive option.
Most of China's hydropower stations are located Central and Southwestern China, in particular in Sichuan and Yunnan provinces, where two thirds of China's untapped hyro capacity is located. The West-to-East Transmission program (xidian dongsong), which is a key component of China’s long-term energy strategy, plans to have a grid of UHVDC transmission lines carry bulk loads from 13 designated hydropower bases in Southwest and Western China over several thousand kilometers to the electricity-hungry coastal provinces. These hydropower bases hold 69% of China’s total exploitable capacity and as of 2008, about 180 middle and large-scale dams are currently under construction there.
Hydropower in China has been touted as a renewable and clean energy source, but this masks the fact that large dams, such as the Three Gorges Dam
Three Gorges Dam
The Three Gorges Dam is a hydroelectric dam that spans the Yangtze River by the town of Sandouping, located in the Yiling District of Yichang, in Hubei province, China...
or the Xiluodu dam on the lower Jinsha River, have had environmental impacts on the areas surrounding dam reservoirs. Erosion, flooding of valuable farmland, and destruction of fish breeding habitats have been typical problems. Moreover, about 15 million people have been relocated due to dam construction since 1949 and often these uprooted local people, in particular in Sichuan and Yunnan, tend to be poor and uneducated farmers, who are strongly attached to their ancestral land and have found it difficult to adapt to the more urban areas they have been resettled to. Growing media and NGO attention on the ecological and social impacts of hydropower and efforts in the central government in recent years to improve the regulatory framework of hydropower development and protect the interests of minority stakeholders, such as displaced locals, indicate that hydropower may eventually become more environmentally and socially sustainable.
Johann Hari
Johann Hari
Johann Hari is an award winning British journalist who has been a columnist at The Independent, the The Huffington Post, and contributed to several other publications. In 2011, Hari was accused of plagiarism; he subsequently was suspended from The Independent and surrendered his 2008 Orwell Prize...
, writing in the Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
in 2011, claims that by 1980 "2796 dams had failed, with combined death toll of 240,000 people. After the construction of the Three Gorges dam, it soon began to trigger landslides and deadly waves. The rivers feeding it were not able to flush out garbage – so the water became carcinogenic and threatened people in 186 cities. But the most startling effect followed the Zipingpu dam – which may well have caused the Sichuan earthquake."
Major hydropower corporations
- China Yangtze PowerChina Yangtze PowerChina Yangtze Power is a Chinese utilities company, headquartered in Beijing. The company is listed on the SSE 50 Index on the Shanghai Stock Exchange. A controlling share is held by the parent company China Three Gorges Corporation , a Central Enterprise under SASAC.The enterprise produces and...
- Sinohydro CorporationSinohydro CorporationSinohydro Corporation is a Chinese state-owned hydropower engineering and construction company. It is the world's largest hydroelectric company...
an engineering company.
Nuclear power
In terms of nuclear power generation, China will advance from the moderate development strategy to accelerating development strategy. Nuclear power will play an even more important role in China's future power development. Especially in the developed coastal areas with heavy power load, nuclear power will become the backbone of the power structure there. China has planned to build up another 30 sets of nuclear power generator within 15 years with total installed capacity of 80 GWs by 2020, accounting for about 4% of China's total installed capacity of the electric power industry. This is percentage is expected to double every 10 years for several decades out.Regional disparities
South China from the Changjiang valley down to the South China Sea was the first part of the economy to liberalize in the 1980s and 1990s and is home to much of the country's most modern and often foreign-invested manufacturing industries. Northern and north-eastern China's older industrial base has fallen behind, remains focused on the domestic economy and has suffered relative decline.Northern and north-eastern China relies heavily on thermal generation from the local coalfields. Northern China will remain reliant on increasingly expensive and polluting thermal generation.
Companies
In terms of the investmentInvestment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
amount of China's listed power companies, the top three regions are Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
province, Inner Mongolia
Inner Mongolia
Inner Mongolia is an autonomous region of the People's Republic of China, located in the northern region of the country. Inner Mongolia shares an international border with the countries of Mongolia and the Russian Federation...
Autonomous Region and Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, whose investment ratios are 15.33%, 13.84% and 10.53% respectively, followed by Sichuan
Sichuan
' , known formerly in the West by its postal map spellings of Szechwan or Szechuan is a province in Southwest China with its capital in Chengdu...
and Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
.
China's listed power companies invest mostly in thermal power, hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
and thermoelectricity, with their investments reaching CNY216.38 billion, CNY97.73 billion and CNY48.58 billion respectively in 2007. Investment in gas exploration and coal mining
Coal mining
The goal of coal mining is to obtain coal from the ground. Coal is valued for its energy content, and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United States,...
follow as the next prevalent investment occurrences.
Major players in China's electric power industry include:
The five majors, and their listed subsidiaries:
The five majors are all SOE
SOE
- Organizations :* Special Operations Executive, a British World War II covert military organisation* State-owned enterprise, a government-owned business* Sega of Europe, a computer game developer* Sony Online Entertainment, a computer game developer...
s directly administered by SASAC. Their listed subsidiaries are substantially independent, hence counted as IPP
IPP
-Science:* Isopentenyl pyrophosphate, a metabolite of both the mevalonate pathway and non-mevalonate pathway of isoprenoid biosynthesis* Ionospheric Pierce Point, the point where the line-of-sight between a satellite and ground station intersects an ionospheric shell model* Integrated Product...
s, and are major power providers in their own right. Typically each of the big 5 has about 10% of national installed capacity, and their listed subsidiary an extra 4 or 5% on top of that.
- China Datang CorporationChina Datang CorporationChina Datang Corporation is one of the five large-scaled power generation enterprises in the People's Republic of China, established on the basis of former State Power Corporation of China in 2002...
- parent of Datang International Power Generation CompanyDatang International Power Generation CompanyDatang International Power Generation Company Limited , simply Datang International Power or Datang Power, is one of the five largest state-owned power producers in Mainland China, especially its position in Northern China...
(SEHK: 991; SSE: 601991)- China Guodian CorporationChina Guodian CorporationChina Guodian Corporation is one of the five largest power producers in the People's Republic of China, administrated by SASAC for the State Council of the People's Republic of China...
("Guodian")
- China Guodian Corporation
- parent of GD Power Development CompanyGD Power Development CompanyGD Power Development Company , or Guodian Power Development Company, the subsidiary of China Guodian Corporation, engages in the generation and supply of power and heat. It was founded in 1992 and was listed on the Shanghai Stock Exchange in 1997. It is headquartered in Beijing, the People's...
(SSE: 600795),- China Huadian GroupChina Huadian CorporationChina Huadian Corporation is one of the five largest state-owned power generation enterprises in China, administrated by SASAC for the State Council of the People's Republic of China, engaging in production and supply of electricity and heat, and the development of power-related primary energy...
- China Huadian Group
- parent of Huadian Power InternationalHuadian Power InternationalHuadian Power International Corporation , formerly Shandong International Power Development Company Limited, is the largest power producer in Shandong Province, the People's Republic of China and it the Hong Kong listed subsidiary of Huadian Group, one of the five largest power producers in China...
Co., Ltd.- China Huaneng GroupChina Huaneng GroupChina Huaneng Corporation is one of the five largest state-owned power generation enterprises in China, administrated by the State Council of the People's Republic of China, engaging in the investment, construction, operation and management of power generation assets and the production and sale of...
- China Huaneng Group
- parent of Huaneng Power InternationalHuaneng Power InternationalHuaneng Power International Inc. , or Huaneng, was established in 1994 administrated by the State Council of the People's Republic of China. It is one of the five largest power producers in China. It engages in the development, construction and operation of large power plants...
(NYSE:HNP)- China Power Investment CorporationChina Power Investment CorporationChina Power Investment Corporation is one of the five largest state-owned power producers in the People's Republic of China, administrated by SASAC for the State Council of the People's Republic of China. It is engaged in development, investment, construction, operation and management of power...
("CPI")
- China Power Investment Corporation
- parent of China Power International DevelopmentChina Power International DevelopmentChina Power International Development was incorporated in Hong Kong in 1994. The State owned PRC parent company CPI Group also has the initials "CPI" but in the case of the parent company the "I" stands for "Investment" not "International" ....
Limited ("CPID", 2380.HK)
Additionally two other SOEs also have listed IPP subsidiaries:
- the coalmine owning Shenhua GroupShenhua GroupShenhua Group is a state-owned mining and energy company in China. It is the largest coal-producing company in the world. It was founded in October 1995 under the auspices of the State Council of the People's Republic of China.-Activities:...
- parent of China Shenhua Energy CompanyChina Shenhua Energy CompanyChina Shenhua Energy Company is the largest coal mining state-owned enterprise in Mainland China, and the largest coal mining enterprise in the world. It is a subsidiary of Shenhua Group...
(SEHK: 1088, SSE: 601088)- China Resources Group ("Huarun")
- parent of China Resources PowerChina Resources PowerChina Resources Power Holdings Company Limited , or China Resources Power, was incorporated and registered in Hong Kong in 2001. It is a subsidiary of China Resources Holdings, a conglomerate in Mainland China and Hong Kong...
Holdings Company Limited ("CRP", SEHK: 836)
Secondary companies:
- Shenzhen EnergyShenzhen EnergyShenzhen Energy Group Company Limited , formerly Shenzhen Energy Investment Company Limited, is one of the main power generation companies in Shenzhen, Guangdong, China. It involves in developing all types of energies, researching and investing high new energy-related technologies...
Co., Ltd. - Guangdong Yuedian Group Co., Ltd.
- Anhui Province Energy Group Co., Ltd.
- Hebei Jiantou Energy Investment Co., Ltd.
- Guangdong Baolihua New Energy Stock Co., Ltd.
- Shandong Luneng Taishan Cable Co., Ltd.
- Guangzhou Development Industry (Holdings) Co., Ltd.
- Chongqing Jiulong Electric Power Co., Ltd.
- Chongqing Fuling Electric Power Industrial Co., Ltd.
- Shenergy CompanyShenergy CompanyShenergy Company Limited was reorganized from Shenneng Electric Power Company in 1992. It is engaged in the investments of electricity, petroleum and natural gas. It invests in Shanghai Waigaoqiao Electric Power Generating Company Limited and Wujing Thermal Power Plant with Shanghai Electric Power...
(SSE: 600642), Shanghai. - Shenergy GroupShenergy GroupShenergy Group Company Limited is a state-owned enterprise owned by Shanghai government in China. It is the parent company of Shenergy Company Limited, the listed company in the Shanghai Stock Exchange. It is engaged in the investments of electricity, petroleum and natural gas in Shanghai and...
, Shanghai. - Sichuan Chuantou Energy Stock Co., Ltd.
- Naitou Securities Co., Ltd.
- Panjiang Coal and Electric Power GroupPanjiang Coal and Electric Power Group-References:...
- Hunan Huayin Electric Power Co., Ltd.
- Shanxi Top Energy Co., Ltd.
- Inner Mongolia Mengdian Huaneng Thermal Power Co., Ltd.
- SDIC Huajing Power Holdings Co., Ltd.
- Sichuan MinJiang Hydropower Co., Ltd.
- Yunnan Wenshan Electric Power Co., Ltd.
- Guangxi Guidong Electric Power Co., Ltd.
- Sichuan Xichang Electric Power Co., Ltd.
- Sichuan Mingxing Electric Power Co., Ltd.
- Sichuan Guangan Aaa Public Co., Ltd.
- Sichuan Leshan Electric Power Co., Ltd.
- Fujian MingDong Electric Power Co., Ltd.
- Guizhou Qianyuan Power Co., Ltd.
Nuclear and hydro:
- China Guangdong Nuclear Power GroupChina Guangdong Nuclear Power GroupChina Guangdong Nuclear Power Group is a major nuclear power corporation under the SASAC of the State Council.CGNPG currently owns Guangdong Daya Bay Nuclear Power Station and Ling Ao Nuclear Power Station Phase I with nearly 4000 MWe of installed generating capacity, and there are six new...
- China Yangtze PowerChina Yangtze PowerChina Yangtze Power is a Chinese utilities company, headquartered in Beijing. The company is listed on the SSE 50 Index on the Shanghai Stock Exchange. A controlling share is held by the parent company China Three Gorges Corporation , a Central Enterprise under SASAC.The enterprise produces and...
(listed) - Sinohydro CorporationSinohydro CorporationSinohydro Corporation is a Chinese state-owned hydropower engineering and construction company. It is the world's largest hydroelectric company...
an engineering company. - Guangdong Meiyan Hydropower Co., Ltd.
Grid operators include:
- State Grid Corporation of China
- China Southern Power GridChina Southern Power GridChina Southern Power Grid Company Limited is one of the two state-owned enterprises established in 2002 according to the precept to reform the power system promulgated by the State Council of the People's Republic of China, the other being State Grid Corporation of China...
- Wenzhou CHINT Group CorporationCHINT Group CorporationFounded in July 1984, CHINT Group Corporation is composed of seven specialized companies. its product line covers Low-voltage electrical products, power transmission & distribution products, instruments & meters, electric products for building & construction, industry automation products and solar...
("Zhengtai")
E-commerce
E-commerce in China is developing at full speed with its many advantages including low cost, high efficiency etc. With the advancement of electric power system reform, the electric utility industry of China has already possessed the basic condition of e-commerce development.http://portal.acm.org/citation.cfm?id=1089710 http://unpan1.un.org/intradoc/groups/public/documents/un/unpan001235.pdfSee also
- China Electricity Council (Brief Introduction Of CEC)
- International Energy AgencyInternational Energy AgencyThe International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis...
- North China Electric Power UniversityNorth China Electric Power UniversityNorth China Electric Power University is a university based in Beijing, People's Republic of China under the national Ministry of Education that specializes in polytechnic disciplines.- History :...
Further reading
- Han, Wenke; Jiang, Kejun; Fan, Lijun. Reform of China's electric power industry: facing the market and competition International Journal of Global Energy Issues, Volume 23, Numbers 2-3, 20 April 2005 , pp. 188–195(8)
- Li, Jerry (2009), From Strong to Smart: the Chinese Smart Grid and its relation with the Globe, AEPN, Article No. 0018602, Asia Energy Platform
- Prof. Xifan Wang, Dr. Loi Lei Lai. "Electric Power Industry Restructuring in China" (Power System Restructuring and Deregulation) DOI 10.1002/0470846119.ch7
- Consideration on energy,environmental problems in electric power industry of China. Proceedings of the Conference on Energy, Economy, and Environment. VOL.16th;NO.;PAGE.235-240(2000)
- China's Electric Power Options: An Analysis of Economic and Environmental Costs (June 1998)
- Xu Yi-chong. "Powering China: Reforming the Electric Power Industry in China." Dartmouth. ISBN 0-7546-2251-7
- Electric Power System in China; History of Development, Present status & Future perspective (2007)
Yearbook
External links
- China Electric Power Research Institute - associated with the State Grid Corporation of China
- Office of the National Energy Leading Group
- China Electrotechnical Society
- Energy Research Institute of China
- China Electric Power Database
- China's oversupply of electric power worrisome 2 January 2006 Zhang Mingquan - HK Trade Council
- China Electric Power Industry Forum
- China EPower Forum