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G. are owned by sub-central governments) and so are not really independent. During this period, the central government maintained sole ownership of the grid. e. nearly all of the grid as well as some 40% of generation capacity, were transferred to the newly formed State Power Corporation (SP). This marked the first step toward separation of market and regulatory activities, at least on paper. It is interesting to note that the State Power Corporation was in place during one of the few periods in recent Chinese history in which power supply exceeded demand.

Regional dispatching centres manage transmission dispatching within each region. Provincial dispatching centres oversee scheduling to implement yearly contracts and to conduct real-time balancing to control provincial power systems. e. most of China) is done on the basis of an average tariff level for each plant, which is approved annually by NDRC. e. per kWh) for their output, which is intended to cover the annual capital and operating expenses. Dispatching of plants depends on a combination of this price and a preset allocation of operating hours, which varies according to the plant.

Current plans are to divest some of the coal-fired plant. Although care was taken in unbundling the State Power Company, various market share factors persist that are important to competition prospects. None of the five new generating companies were allocated more than a 20% share of any one of the regional power markets. However, their geographic roots in certain parts of the country are still evident. For example, Datang remains strong in the north, near the coal supplies; Huaneng is strong along the east coast; and Huadian is well-represented in Shandong province.

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