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China’s power market liberalisation gains more momentum

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11 April 2017

China’s power market liberalisation gains more momentum

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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    China's power market liberalisation gains more momentum

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