Private capital OK'd for power industry
Updated: 2012-06-19 13:57
By Du Juan (chinadaily.com.cn)
|
|||||||||||
China will encourage private capital participation in the power industry, an area previously the preserve of State-owned companies, according to officials at the State Electricity Regulatory Commission. Details will be published soon.
Private capital will be given access to operations involving thermal electricity, hydropower, nuclear power, new energy and particularly grid businesses, the China Securities Journal reported on Tuesday.
The National Energy Administration is working on drafting a plan to open the downstream infrastructure construction and grid business in some sectors.
Lin Boqiang, a professor at the Center of China Energy Economics Research at Xiamen University, said private capital investment was allowed in the power generation industry as early as 1985. However, it dropped from 15 percent of the total investment to less than 3 percent at present.
On June 5, a spokesman for the National Development and Reform Commission said details of the regulations on private investment will be published by the end of the month and the key message of the new rules will be reducing the requirements.
However, Lin said if private investors cannot see scope for profit, they will not enter the business.
"Ensuring a return for private companies is key and a regulated market for the power industry is necessary," he said.
dujuan@chinadaily.com.cn
Related Stories
China to regulate residential power use 2012-06-14 17:19
China to face mild power shortage this summer 2012-06-14 09:05
Private investment details released 2012-06-06 13:58
New lure for private investment in SOEs 2012-05-26 09:21
Private investment to enter into more sectors 2012-05-23 09:41
Today's Top News
President Xi confident in recovery from quake
H7N9 update: 104 cases, 21 deaths
Telecom workers restore links
Coal mine blast kills 18 in Jilin
Intl scholarship puts China on the map
More bird flu patients discharged
Gold loses sheen, but still a safe bet
US 'turns blind eye to human rights'
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
All-out efforts to save lives |
Liaoning: China's oceangoing giant |
Poultry industry under pressure |
'Spring' in the air for NGOs? |
Boy set to drive Chinese golf |
Latest technology gets people talking |