China＇s Electric Power Reform：Different Economics and Challenges

China＇s electric power reform has followed the western reform format, however, it doest not seem to have endorsed the liberalization ideology underlying the reform model. This raises the concern of whether and how a competitive power market may be established and reform objectives reached. The new market competition model is easy to build in theory. The experience of many countries suggests that the market reform is extremely difficult because of the interruptions by different interest groups. To transform a centrally planned power sector into a competitive power market is a daunting task. Policy makers need to take into consideration the transitional nature of the economy and power industry as they implement the competitive power market model.