Special Report: China's other power struggle

Comments (4)
upstater wrote:

Electricity is a natural monopoly and does not lend itself to competition. It is a commodity which must be consumed as it is produced and planning of resources can only be sensibly done on an integrated basis. Only fools and the greedy believe otherwise.

Just look at deregulated markets in the UK or US for proof of the failure of deregulation and unbundling. The UK is in a mess and will obviously have serious supply problems in the next 10 years. In the US any dregulated market has far higher rates than where regulated vertically-integrated monopolies remain (state or investor owned).

No deregulated market could possibly pull off a UHV grid.

Oct 16, 2012 7:02pm EDT  --  Report as abuse
WJL wrote:

A nation wide grid is also used in Australia. There are compelling technical and economic considerations in having a single grid operator. This included synchronisation of diverse power sources, reduction of duplicity, stability and balancing electrical loads.

This article should explore whether America also has a single grid system

Oct 16, 2012 8:49pm EDT  --  Report as abuse
jwhitecfsgam wrote:

I entirely agree with the first two commenters. It was an article that played the man not the ball. There is zero benefit from privatising a national grid. If China gets UHV right it has massive implications for other countries such as nuclear power in the middle of deserts.

Oct 17, 2012 2:26am EDT  --  Report as abuse
ncshu2 wrote:

I think the article missed one of the best examples to understand how the vested interest groups including state-owned monopolizing enterprise control everyday life in China, through their representatives connected with the upper echelon of the ruling communist power, either by business or family bloodline. Interestingly, the example also related to the electricity utility supply in China. It’s well known in China, that former prime minister Li Peng’s daughter, Li Xiaolin is the vice president of China Power Investment Corporation. The corporation is one of the five nation-wide power generation enterprise owned by the state and a comprehensive energy group integrating industries of power, coal, aluminium, railway and port, according to the company’s website. Now you can see how these state-owned monopolizing enterprises control the lives of ordinary Chinese. Sure even in many industrial western countries the electricity utility industry is also regulated by government, but to my understanding, the regulation of these industries also includes regulating its operation cost and profit margin. With a daughter of former prime minister and communist party general secretary sitting at the management as vice president, how could ordinary Chinese regulate the state-owned corporation regarding to its operation cost and profit? Actually the electricity utility price has been repeatedly raised by the Chinese government. Beside as the vice president of the corporation, Ms Li also serves as a member of the Chinese People’s Political Consultative Conference, one of the two chambers of the Chinese legislature. During the last national annual session of the conference, Ms. Li was caught up among the public uproar not only by her near 2000 US dollar pink blazer from Emilio Pucci but also by her proposal as a member of legislature to set up a computerized national morality record of every Chinese for a better social control by the communist party. Through this example you can glimpse on how political power, family bloodline and economic profit mingle in China.

Oct 17, 2012 5:43am EDT  --  Report as abuse
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