Monday, February 11, 2008

Energy Update: Transmission Deregulation coming

I'm not going to be so presumptuous as to suggest that my post comparing California's 2000-01 energy crisis with China's current energy crisis had anything to do with this, but over the weekend China's NDRC decided to try to start deregulating China's energy transmission by increasing FDI in transmission. Chris Devonshire-Ellis has an in-depth post on this over at China Briefing. You can only transmit as much energy as you have wire. If there's a profit to made in transmission, and there is, then companies will be scrambling over each other to build those transmission lines when they can. End result, more people are getting more energy, and there is more wealth to go around. Or so goes the theory.

1 comment:

Howard Lee said...

Yay!! More carbon pollution into the air. Today's Wall Street Journal has an article discussing how China is sending coal prices up because despite the large concentrations of coal reserves in China (200+ years at current consumption if I remember correctly) they can mine them out fast enough and has started importing coal. The article surmises how China is sending commodity prices soaring everywhere, first oil and now coal.

Ever play Fallout, the CRPG back in 1997? What caused the nuclear apocalypse? China and the US fight over the last oil fields on earth. And then there is always People's General.

It was quite fun playing People's General while sitting around in Shanghai. Later