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China’s power market liberalisation gains more momentum
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Report summary
China kicked off the programme to liberalise its power market in March 2015, and has made solid progress in the past two years. The benefits are obvious – liberalisation saved China US$150 billion on its 2016 power bill. The country's new power market liberalisation policy announced on 10 April will maintain the reform momentum, but is set to face a growing backlash. Slower demand and a structural supply glut are piling more pressure on coal generators – and they could face a greater struggle when exposed to stiff market competition. As liberalisation progresses, clean energy sources will also need to leave incubation and prepare to fend for themselves in the market.
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- China’s power market liberalisation gains more momentum
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- Reforms increase downward pressure on coal
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