The National Development and Reform Commission (NDRC) issued recently the “Guidance on the promotion of supply side structural reform to prevent the risk of coal power capacity surplus”.
A clause entitled “encourage and promote the implementation of reorganization and integration of large-scale power generation group” attracted much attention. According to the latest list of SASAC Central Enterprises, there are currently 11 national companies involved in power generation business. In addition to the five major power generation groups, there are Shenhua, SDIC Huajing Power Holdings Co., Ltd, the Three Gorges Group, China Resources Power, CNNC and CGN who are mainly engaged in nuclear power business.
These 11 state-owned enterprises dominate China’s power generation field with the total installed capacity of 60%, while thermal, hydroelectric, nuclear, wind power respectively accounted for 59%, 54%, 100%, 73%.
Among them, the total size of the five power generation groups accounted for 44%, 47%, 33%, 11%, 55% in the total national installed capacity, thermal, hydroelectric, nuclear power, wind power.
It is noteworthy that SPIC and CGN are the only two in the country covering several fields including the thermal power, water and electricity, nuclear power, new energy power generation. CGN’s holding wind power has reached 10.93 Million-kilowatt, ranked 6th in the Central enterprises, in addition to hydropower (1.58 Million-kilowatt), photovoltaic (1.96 million-kilowatt) and thermal Power (650,000-kilowatt).
Recently, the news of Shenhua’s reorganization with China Guodian Corporation has been continuously spread, but has not been settled, It is not difficult to find that companies seeking mergers are looking for weaker objects in their own plates to achieve corresponding advantages. Bigger and stronger, perhaps it will be the main line of the reorganization and merger of this round of power generation enterprises.
