A Report On The Chinese Electric Industry Essay

705 Words Nov 29th, 2014 3 Pages
The Chinese electric industry was centrally planned, tightly controlled and state-owned. Due to shortages in 1986, China began reforming the electricity sector by liberalising it and introducing competitive wholesale markets, removing price regulation, privatising utilities, unbundling generation and distribution, and establishing competitive retail markets.

Prior to 2000, trade in the wind energy sector was completely guided and mandated by the government through demonstration projects cite{IEEEhowto:China_mkt_outlook}. The grid operators were required to purchase any wind energy that was produced. After some initial experiences, the government initiated concession projects where wind developers were allowed to bid on the price of wind energy that was being sold. After the Renewable Energy Law was enacted, four groups of FIT 's were adopted and the grid operators are required to purchase wind energy unless technical considerations limit their use.

According to cite{IEEEhowto:china_policy_mkt}, China has been cautious by not completely surrendering to measures that would result in a more advanced privatisation of the industry. China follows a policy of a dual electricity system which means that the state plans at the core, but there is a decentralised generation system at the periphery. The Ministry of Electric Power revises its central plans every five years. Despite these reviews the chinese government still manages information between departments poorly.…

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