Opportunities for foreign investors into the Chinese electricity supply industry have been steadily increasing since 1992, when the market was opened to foreign investors. China has laid out its development plan up to the year 2020 and as a uniquely structured market, there are a number of issues to be aware of when investing in this industry and dealing with stakeholders.

With the spectacular growth of the China economy, China's electricity production is said to experience a steady growth rate of an average of 11.5% each year in the next 50 years. To meet this demand, China is looking for international cooperation, including equipment import, technology transfer and foreign investment. Although China's electrical power output is second in the world, on a per capita level it remains extremely low. Finally, with China's commitment to green energy, foreign energy technologies are well suited to help China curb power related pollution.

This CMS report provides an overview of the key issues and stakeholders in the Chinese electricity supply industry:

  • Government policy for the electricity sector
  • Structure of the industry, functional unbundling and corporate separation
  • Wholesale and retail competition: trading arrangements
  • Regulators and the scope of their authority
  • Regulatory regimes
  • Special consents and permits required from governmental and regulatory agencies
  • Regulation of monopolies and anti-competitive practices
  • Cross-border trade
  • Renewables policy and its implementation
  • Emissions control and allowance trading

To download a copy of the report, please click here.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 14/11/2008.