China is the world's most populous country, the largest energy consuChina is the world's most populous country, the largest energy consumer after the United States, and the production and consumption of its dominant fuel coal is the highest in the world. Meanwhile, China's thirst for power keeps growing. Economic advancement requires it -- China has set a target for annual economic growth of around 7% over the 2001-2005 period. Electricity demand typically rises in the same proportion as economic growth. China’s vertically integrated and highly regulated power sector is undergoing a gradual transformation process as the government struggles to keep apace with rapid power consumption growth. A key issue for China's power industry is the distribution of generation among power plants. China's intention is to eventually create a unified national power grid, and to have a modern power market in which plants sell power to the grid at market rates. That's the theory, anyway.
In this article Kasper Walet of Maycroft Consultancy will take you on China’s bumpy road to deregulating their electricity market to fuel their high macroeconomic prospects.