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4 - Technology Integration in China’s Electricity System: Central Targets and Local Challenges

Published online by Cambridge University Press:  08 June 2019

By
Michael Davidson
Edited by
Loren Brandt  and
Thomas G. Rawski
Loren Brandt
Affiliation:
University of Toronto
Thomas G. Rawski
Affiliation:
University of Pittsburgh
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Summary

China’s state-directed technology development and deployment programs have led to unprecedented adoption of advanced technologies in its electricity sector. However, signs of inefficient capital allocation are widespread, such as continued coal plant capacity build-out amidst slowing electricity demand growth and underutilization of renewable energy investments. The separation of technology programs from durable local autonomies in electricity systems operation and planning, as well as unsuccessful central reforms to create a market for the fundamental commodity, electricity, contribute to uncaptured economic and public health benefits. China’s programs on high-efficiency coal-fired power plants demonstrate this important lesson for industrial upgrading: technological innovation and adoption do not reap their full benefits without comparable modernization of regulatory and policy frameworks. Ongoing power sector reforms may be insufficient to address these issues.

Keywords

Chinaelectricitycoalrenewable energywind energytechnology policyinnovationpolitical economymarket regulationinefficiency
Type
Chapter
Information
Policy, Regulation and Innovation in China's Electricity and Telecom Industries , pp. 134 - 176
Publisher: Cambridge University Press
Print publication year: 2019

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