Financing China’s Electricity Sector

Abstract

China’s total investment in the electricity sector during the 12th Five Year Plan (FYP) period reached RMB 3.9 trillion. Equity financing has become increasingly important and other innovative instruments have been developed. Moreover, the booming renewable energy industry has brought new features to the electricity sector. As the 13th FYP further reinforces the importance of renewable energy and the upgrading of China’s existing energy system, there will inevitably be further reforms and changes, which will consequentially affect the financing structure of this industry. This chapter begins with a brief introduction to the current state of financing in China’s electricity sector, before discussing its future development. The hope is to provide interested readers with a general picture of financing in China’s electricity sector.