Power & Energy

The power and energy sector has changed remarkably since reform and opening thirty years ago. Three phases have marked it’s expansion: the first, between the late 1970s and late 1980s, witnessed the economy growing at a much faster rate than energy capacity where blackout and brownouts were numerous and chronic; the second, between the late 1980s and WTO accession, saw massive capacity building (at an average rate of 2-3 plants per week) with low construction quality and inefficiency prevalent; the third, since WTO accession, in which attention has been turned from quantity to quality, as environmental factors are considered, new technologies tried and “soft-power” used to secure foreign resources.

The power and energy sector is largely state-owned and overwhelmingly state-controlled. The major players in terms of energy resources are (coal) Shenhua Group, China Coal, Datong, (oil & gas) CNPC, Sinopec and CNOOC. Major electricity producers are the “big five” Huaneng, Datang, Huadian, Zhongdian and Guodian. China Grid Corp and Southern Grid Corp are the main utility companies. Within this “family” of conglomerates there are many tacit alliances, vertical ownerships and relationships that make this otherwise large and profitable market a challenging one to sell to.

GCiS was one of the first research companies to produce studies on the market for alternative energy and energy efficiency in China. Consequently, many large power products companies have commissioned strategic work in this field. Recent projects include an M&A support study of the market for solar cells, assisting on the design of a power plant retrofit business model and a full study of the market for gas-insulated switchgear.