China to allow private capital in power industry

Beijing, June 19 (IANS) China will encourage private capital in the power industry, an area where only state-owned companies were previously allowed, according to the State Electricity Regulatory Commission.

Private capital will be given access to operations involving thermal power, hydropower, nuclear power, new energy and particularly in grid businesses, the China Daily reported Tuesday.

The National Energy Administration is working on a draft plan to open infrastructure construction.

Lin Boqiang, of the Center of China Energy Economics Research at Xiamen University, said private capital investment was allowed in the power generation industry as early as 1985. However, it dropped from 15 percent of the total investment to less than three percent at present.

However, if private investors cannot see scope for profit, they will not enter the business, he said.