| This paper deals with the problems and the opportunities of cascade hydropower development of the Upper Yellow River. Qualitative method and quantitative method is adopted to analyze the effect of the cascade hydropower development and its interconnection project of the Upper Yellow River and how to promote its competitiveness is discussed. Four conclusions are put forward from this paper and are list as follow.Firstly, the projects on the Upper Yellow River from Longyangxia to Qingtongxia have excellent natural and construction conditions as well as advantages in successive cascade development, including superior regulation performance, less inundation loss and resettlement and superior technical economic indexes. But as its problems are concerned, it should face the challenges such as regime, management and mostly policy.Secondly, the effect of hydropower of the Upper Yellow River is not reflected fairly. So its whole effect is calculated according to the shadow price, and the result is that the whole effect is almost one and a half times large than the effect, which the effect of the amount of generation is calculated.Thirdly, the feasibility of power transmission from west to east is approved. Development of hydropower resources on the reaches from Longyangxia to Qingtongxia not only can meet the increasing demand in the northwest power network but also is one of the major measures for overcoming the peaking difficulty in North China power network. Interconnection of the northwest and north power networks has the beneffts of peaking, staggering peaks and reducing reserve capacity.Lastly, the competitiveness of cascade hydropower development of the Upper Yellow River should promote as the market economy needed. Its existing condition is analyzed and its competitiveness is stated. Based on the analysis of the model of management watershed, the strategy of rolling-develop the hydropower is instructed.
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