The Current Situation And The Choice Of Developing Strategy Of Private Hydropower Enterprise In Sichuan

Since the financial crisis in 2008, the economy of China stepped back to normal attributing to the stimulation by strong fiscal and monetary policies; however, the general power demand is still fluctuate. Under such circumstances, the graduate thesis evaluated the current state and designed the development strategies of private hydropower enterprises in China based on the updated economic data and practical operational experience of the author.First of all, the author proposed that the Chinese economy had not fully recovered yet, thus CPI continue to rise, by analyzing the unique dual economic mode in China and the recent economic data beginning with the current contradiction between the power demand and GDP growth rate. It was concluded that it would barely happen that the power demand increased sharply in recent years; hence, electric power enterprises should pay more attention to the risk control, and secure the fluency of cash flow to guarantee the companies’safety.Then the author discussed the structure of electricity in China and the policies encouraging new hydropower constructions, along with the comparison of advantage and disadvantage of public and private companies, and pointed out the development of private hydropower enterprises in the future.Based on the analysis as shown above, the author shed the light on the solutions for the private enterprises by establishing the SWOT model. Based on the analysis as shown above, the core discussion of the thesis was focused on the different options of development strategies for the private enterprises. There are five major strategies proposed by the author including CDM financing, and integrating the resources of private hydropower companies so that they could successfully obtain the admission to the stock market thus prompting the entire industry, the implementation of policies for promoting the Direct-Electricity-Purchasing by Major Customers and Two-Systems-Electricity-Price, and employing the West-to-East electrical transmission project to expand the marketing channles.