Electricity sector in China
China is the world's largest electricity producer, having overtaken the United States in 2011 after rapid growth since the early 1990s.There is however a geographical mismatch between the location of the coal fields in the north-east (Heilongjiang, Jilin, and Liaoning) and north (Shanxi, Shaanxi, and Henan), hydropower in the south-west (Sichuan, Yunnan, and Tibet), and the fast-growing industrial load centers of the east (Shanghai-Zhejiang) and south (Guangdong, Fujian).The law set out to promote the development of the electric power industry, to protect the legal rights of investors, managers, and consumers, and to regulate the generation, distribution, and consumption.Ongoing reforms aim to separate power plants from power-supply networks, privatize a significant amount of state-owned property, encourage competition, and revamp pricing mechanisms.[15] In 2024, China's National Energy Administration ceased publishing data on power utilization by each generating source, impeding analysis of grid constraints.2020 electricity & other energy statistics (preliminary)[25] (Note that change in generation capacity is new installations minus retirements.)[32] The think tank Carbon Tracker estimated in 2020 that the average coal fleet loss was about 4 USD/MWh and that about 60% of power stations were cashflow negative in 2018 and 2019.[42] This was followed up in January 2017 when the NEA canceled a further 103 coal power plants, eliminating 120 GW of future coal-fired capacity, despite the resistance of local authorities mindful of the need to create jobs.[50]: 70 Major coal-producing provinces like Shaanxi, Inner Mongolia, and Shanxi instituted administrative caps on coal output.[50]: 70 The NDRC responded by relaxing some environmental standards and the government allowed coal-fired power plants to defer tax payments.[55] Hydroelectric plants in China have relatively low productivity, with an average capacity factor of 31%, a possible consequence of rushed construction[52] and the seasonal variability of rainfall.Moreover, a significant amount of energy is lost due to the need for long transmission lines to connect the remote plants to where demand is most concentrated.In 2023, China's natural gas production will increase significantly, with the total volume reaching approximately 229.7 billion cubic meters.[74] This import capacity strengthens China's key role in the international LNG market and reflects its strategic measures to ensure energy security and supply stability.Although the COVID-19 pandemic slightly slowed momentum in 2020, reducing the added capacity to 5,430 MW, the sector's growth trend continued upwards.By mitigating the variability and intermittency of renewable energy, storage technologies facilitate a more stable and reliable power supply.In 2023, China's energy storage industry saw a dramatic surge, with its capacity expanding nearly fourfold due to advancements in technologies such as lithium-ion batteries.By the close of 2023, the capacity within the sector of new-type energy storage soared to 31.39 gigawatts (GW), achieving an increase of over 260% compared to the previous year and almost a tenfold rise since 2020.[78] China's approach to DR has included pilot projects in cities like Suzhou, Beijing, and Shanghai, focusing on tariff reforms and pricing strategies to encourage participation.It will also enable the country to tap the enormous hydro potential from western China to meet booming demand from the eastern coastal provinces.Long distance inter-regional transmission has been implemented by using ultra-high voltages (UHV) of 800 kV, based on an extension of technology already in use in other parts of the world.Additionally, two other SOEs also have listed IPP subsidiaries: Secondary companies: Nuclear and hydro: Grid operators include: Creation of a spot market has been suggested to properly use energy storage.
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