China to allow private capital in power generation

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China has pledged to increase the participation of domestic non-state companies in electricity generation, which has so far been dominated by state enterprises. Non-state entities will be allowed equal access to the power industry, according to the State Electricity Regulatory Commission.

Private capital will be given access to operations involving thermal power, hydropower, nuclear power, new energy, and particularly in grid businesses. The announcement is part of a drive by the government to foster competition in China’s energy and infrastructure industries.

The National Development and Reform Commission, the country’s economic planning agency, said earlier this month that a policy framework would be announced this month to grant investors wider access to traditionally state-controlled sectors such as oil, power generation and transportation.