Five Problems in China's Electric Power Development

At the 2010 Asian Energy Forum held on the 14th, Lu Yaohua, Chairman of the Supervisory Board of State-owned Key Large-scale Enterprises of the State-owned Assets Supervision and Administration Commission of the State Council, announced the recent centralized investigation and research on the development of the electric power industry led by the SASAC board of supervisors and pointed out that China’s electric power development is still existing. The five major issues:

- The power structure is not reasonable. Lu Yaohua cited survey data that at the end of 2009, thermal power installed capacity accounted for 70.5% of the total installed capacity in the country, and most of the coal was used as fuel. The hydropower installed capacity accounted for 22.5% of the total installed capacity. Compared with the huge hydropower resources, it was obviously biased. low. Nuclear power installed capacity accounted for only 1%, which is also obviously low.

- The planning of electricity is seriously lagging behind. Lu Yaohua pointed out that the current planning and authority of the power industry is not strong, between the national power planning and local planning, power planning and power grid planning, power supply structure planning, traditional energy planning and new energy planning There is a lack of uniformity, coordination, and scientificity between the coal and coal transportation planning and transmission planning.

- The formation mechanism of electricity prices is unreasonable. Lu Yaohua believes that the implementation of coal price linkage mechanism is not in place and the methods are not perfect, which affects both the sustainable development of power companies and the long-term planning of media companies.

——The construction of laws and regulations in the power industry is slow. Lu Yaohua said that since the reform and opening up, especially since the reform of the power system in 2002, great changes have taken place in the management system and mechanism of the electric power industry, the science and technology of electric power, and the electric power management institutions. However, they are still implemented in 1996. The implementation of the "Electricity Law" and the enacted "Renewable Energy Law" also lacked implementation rules.

- Increased environmental and social pressures in the development and construction of electric power, and increased difficulties in development. Lu Yaohua said that the costs of land acquisition, demolition, soil and water conservation, vegetation protection, immigration appeals, etc., have greatly increased, and some have exceeded the affordability of power companies.

Lu Yaohua believes that if the above problems cannot be solved well, it will greatly increase the cost of China's power construction and even energy development.

He also specifically called for the further development of the potential of hydroelectric power generation.