International Law

Beijing To Increase FDI in National Power Sector by Liberalizing Regulatory Environment

By Chris Devonshire-Ellis

National infrastructural investment rather than regional profit taking the key to policy change

By Chris Devonshire-Ellis

February 11^th - Beijing is set to fast track regulatory changes to permit increased foreign investment in the countries stressed national and regional power grid network following the chaos of the winter?s snows, our contacts close to the NDRC explained yesterday.

Fingers have been pointed at an inefficient national grid beset by leadership problems, regional differences over policy, an archaic system still largely decentralized, suspicion of foreign involvement in the countries power generation capability and a tendency to put profits ahead of investment have all contributed to damage the deliverabilty quality of the national grid it was stated.

Certainly much needs to be done. While the generation demands on the national power grid have risen 100% over the past five years, the systems expansion increased only 16%. Interconnectivity problems nationally have also led to structural risks as the regional grid companies have not been keeping pace with the expansion of the power producers. (more…)

Full post as published by China Briefing Blog on February 10, 2008 (boomark / email).