• study of the legal limitations of foreign participation in, and financial support for, electric power transmission facilities in China to promote increased interest in independent power production in China; and

  • exploration of options to improve the adequacy, quality, and reliability of electric power and the reduction of line losses in transmission and distribution.

China is facing a difficult task in the interconnection of the six regional power networks and could benefit greatly from collaboration with institutions in the United States. Specific technology expertise is needed, which includes many aspects of establishing and maintaining a reliable interconnected power grid, such as techniques for load leveling and load profile improvement, power quality, and the upgrading of distribution systems.

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 AC transmission (FACTs), 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.

The CCEF recommends that both governments consider initiating a project that demonstrates the potential for programs in demand-side management, load management, and integrated resource planning, starting from a market-based approach to energy pricing. The committee noted the wealth of expertise in the U.S. utility and power services industries on these techniques, which, if adapted to local conditions, could play a significant role in China. The United States is moving away from these activities as it deregulates its electric power industry; the timetable for China’s eventual move to deregulation, however, is unknown, and that decision will be based on its experience in several trial areas.

H2) The CCEF also found that China and the United States share an interest in developing more economically viable distributed power sources for remote areas, as noted in the recommendation on natural gas. 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. Efforts of international financial institutions to provide electric power services in China are encouraged to look at opportunities in distributed generation in China.

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