11th July, 2016 is a special day in China’s electricity market reform history, since it has witnessed the official establishment of Gui’an New Area Energy Co, Ltd in the province of Guizhou, the first mixed ownership electricity distribution and retail company in China.
This post has been written by Li Yue, Marketing & Brand Director at Tellhow.
By the end of May 2016, 7 high-quality companies of various types across power sector have decided to co-invested in a joint venture with a registered capital of RMB 1,5 billion (EUR 200 million) to explore a brand new business model of energy supply and service.
These shareholders are Guizhou Province Grid (taking 40% share proportion), Gui’an New Area Government Investment Company (30%), China Power International Development Co. (8%), Ltd, Tellhow Sci-Tech Co., Ltd (7%), SDIC Power Holdings Co., Ltd (6%), Creative Distribution Automation Co., Ltd (4.5%) and Guizhou Wujiang Hydropower Development Co., Ltd (4.5%). Figure 1 shows the stakeholder composition. Among them, Tellhow and SDIC are privately held and listed companies while the other shareholders are state-owned companies.
Sorce: Tellhow
Figure 1: Stakeholder composition of the municipal utility Gui’an
China, the world’s largest electricity consumer, has initiated the reform of its power sector since March 2015 by publishing the so-called decree No. 9. Within only 9 months, over 600 electricity retail companies have emerged in China. Standing out from all of those retail companies, Gui’an New Area Energy Co. Ltd. is the first one incorporating electricity distribution service, which used to be monopolized by state-owned grid companies. Located in the Guizhou province of southwest China, this pilot case shows the great ambition of Guizhou government to implement the power sector reform. We are witnessing the transformation of Guizhou from an underdeveloped province into one of the most economically innovative and energetic region across the whole country.
As the largest private-held shareholder, Tellhow Sci-Tech Co., Ltd is a listed high technology company in intelligent power industry. With a full-scale global strategy herself, Tellhow’s involvement as a game player will potentially drive Gui’an New Area Energy Company to introduce more advanced renewable technologies from Germany and the US. By cooperating with high-tech energy companies on a global scale and constructing german-based knowledge transfer platform, Tellhow will help attract more international capital to Gui’an New Area to make it a demo center of energy internet and regional comprehensive energy management system.
