2014 Emerging issues in China Power and Delivery Sector

The traditional economic pattern of China Power & Delivery sector has been facing challenges this year including regulation, strategic, financial constraints in different levels, and the sharp rise of the cost combined with the flat power demand. All factors above are leading the industry into a potentially destructive cycle.

Among many trends worthwhile to explore, this report focuses on the future of nuclear power, turning point of renewable energy, the subversion of smart grid, overseas mergers and acquisitions of China power & delivery enterprises, and the new challenges under the new risks, because these fields mentioned above are closely related with the future strategies and operations of the Power & Delivery enterprises, and experiencing major changes with influences on the industry blueprint.

With the global nuclear renaissance and emerging nuclear power countries, the competitions in nuclear resources and overseas nuclear market have been severely intensified. After adjustment, renewable energy sector is expected to bottom out in 2014, with the joint impacts of market, capital, and technologies.
The launch of China emissions trading also triggers huge potential of China carbon market. The Power & Delivery enterprises need to be ready, because the construction of smart grid and the reform of power market are going to change the power sector ecosystem and the interaction pattern between companies and users. The overseas mergers and acquisitions of power and delivery enterprises will continue to be active and mainly focus on derived renewable energy assets. With China economy stepping into the shifting period, the political and financial environment is both full of uncertainties.

The Power & Delivery enterprises will face the new risks in respect of compliance, capital and among others.