Industry Analysis & Industry Trends
The Electricity Transmission and Distribution industry is expected to generate $580.2 billion in 2013, an 11.3% increase on the previous year. Over the five years through 2013, revenue has been growing at an annualized rate of 11.5%.
Two large monopoly companies are in control of the majority of China's electricity transmission and distribution activities. The State Grid Corporation of China (SGCC) controls over 88.0% of China's land area and retailed more than 60.0% of total consumed electricity in China in 2012. Meanwhile, China Southern Power Grid Corporation Limited (CSG) covers 10.4% of China's land area and sold 5.0% of total consumed power.
Over the next five years, China will continue to evolve into an energy-saving country, with industry revenue growing by only 8.4%.... purchase to read more
Industry Report - Starting a New Business Chapter
Restrictions on operations and license requirements for firms are strictly enforced by the government. Further, incomplete regulations and regional protectionism have created regional monopolies. These factors make it increasingly difficult for new firms to enter the industry and to compete with local power supply companies.
High capital intensity
Prospective entrants to this industry must have large amounts of capital and considerable expertise to enter the industry.
The two largest enterprises in this industry, SGCC and CSG, together control the retail market and almost 100% of electricity transmission and distribution activities in China... purchase to read more