to separate power generation from transmission and distribution. This intention presents an important opportunity for collaboration between the two countries. There is also the need for a closer coordination with the international financial institutions who are providing support to China in efforts to create a competitive generation market, one that includes independent power producers.

The CCEF recommends that the governments of the United States and China collaborate on measures to foster the development of a successful electric power sector, including:

  • planning for interconnection and further development of the electric power grid

  • encouraging international financial institution financing for the electric power grid in China,

  • examining the conditions necessary to promote increased interest in independent power production in China, and

  • improving the adequacy, quality and reliability of electric power in China. (H1)

The committee also notes the importance of ongoing efforts to restructure China’s energy sector and made several cross-cutting recommendations to that effect, above.

Technology collaboration—both public and private—between China and the United States could contribute to optimizing the electric power grid and increasing reliability under circumstances in which both countries would benefit. The key component in ensuring successful private sector collaboration is the formation of a transparent and competent regulatory process in which all parties have confidence. A structured exchange between the Electric Power Research Institutes in each country would provide significant opportunities for information exchange and could provide insight into advanced technology deployment in the United States especially in flexible alternating current transmission, the performance of clean coal technologies, and distributed generation deployment. Such a relationship could also provide the connection necessary to build on the experience gained in the United States in providing power to outlying rural areas.

China and the United States share an interest in developing more economically viable distributed power sources for remote areas and should identify cooperative activities that advance this interest. (H2) China’s ongoing efforts to provide energy services to its large rural population provide a significant opportunity to examine the role of non-grid connected systems, especially those that incorporate a renewable energy component.

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