The Research On The Competition Strategic Model Of Hydropower Development

Since the beginning of the reform and opening up, China's economy has undergone a sustained and substantially high growth, as well as a continuing social progress. The growth trend becomes even more vigorous with the turning of the new century. Consequently, power support has become the bottleneck for the rapid eco-social development. In 2003, over twenty provinces and regions in China experienced limitation on power use in the form of intermittent cutoff of supply, which prominently reflect the contradiction brought by the lagged development of energy industry relative to the eco-social development. The energy composition of China is characterized by affluent coal,scarce oil, scarce gas and rich water resources. In the fairly far future, like in the past, coal power will remain to be the leading part in the power composition. Control of harmful gases emissions is a very urgent task. By contrast, hydropower resources in China possess a very great potential for development. Moreover, hydropower enjoys incomparable economic and technological advantages over coal power. So, to fully exploit and comprehensively utilize hydropower is our best choice, either from the perspective of China's national conditions or in view of advanced countries'experiences regarding energy construction, either from the perspective of the nation's energy strategy or the environmental protection. However, the exploitation of hydropower resources, especially the construction of large water conservancy hubs needs big investments and is a long-term one. It involves high sophistication of technology, as well as the relocation of large populations and environmental protection. It involves also the issues regarding land, agriculture and forestry, traffic and geography, etc. The operations of the enterprise are also complicated. This is the reason for the low ratio of exploitation of hydropower resources in China. It's not only much lower than that in advanced countries, but is also lower than the world average. Consequently, researching the competition strategic model of hydropower development in China has very important theoretical and practical implication. The main research works and conclusions of this dissertation are as the follows: (1) This dissertation puts forward and demonstrates new business operation style of hydropower enterprises in China----Direct Power Supply Model. The result shows that, the Direct Power Supply Model is inexorable selection of the whole social and economic development and the Yangtze River Power Corporation development. It also assesses one proposed strategy and finds that the active participation in price competition for networking may help display the obvious low cost advantage of the hydropower enterprise, and the strive for direct power supply may afford more opportunity for the low cost enterprise to touch some of the end users. This not only helps to break the monopolized (currently an actually single agent) power purchase system, but also creates a policy advantage which helps the local areas to directly use the local water resources to develop (or introduce) large industries (for adjusting the industrial structure, increasing employment and especially for the relocation of emigrants). It also helps to develop the regional economy. Besides, this strategy will also promote the cooperation with other related enterprises, and thus promote the development of a multiple-element industry. Because the Direct Power Supply Model can make the low cost hydropower firm master partly terminal customers, then it is a normous chance for the low cost hydropower firm. (2) This dissertation puts forward and demonstrates new development and working style of hydropower enterprises in China----Stepped Development and united Arrangement Model. The result shows that, the Stepped Development and united Arrangement Model is the development and working style suiting the hydropower enterprises in China. The fact that the monotonous operation of hydropower station has the technological disadvantage such as a limited adjustment ability and the balance discrepancy makes it lacking in competitiveness, while a combined operation of stepped multiple power stations of the valley can make up for these deficiencies, changing the disadvantage into an advantage and giving more competitiveness to the power supply and power quality of the enterprise. The stepped power stations hub of the valley should be planned and managed in a unified way. They should be developed in planned order and their operations should be combined. The principle to be adhered to is the dispatch for flood prevention and for ecological protection should be guaranteed as the prerequisite and the comprehensive project functions of both electricity generation and shipping dispatching should be optimized. This strategy will yield a state where the overall development cost of the stepped power stations hub of the valley is minimized, the operational benefit is maximized, the comprehensive functions of flood prevention, shipping, electricity generation, and irrigation are optimized, social economy and eco-system protection are best harmonized, and the two corporate values—operational value and social value are most adequately embodied. (3) This dissertation puts forward the feasible development strategic for such theChinese hydropower enterprises as the Yangtze River Power Firm. The result shows that, the Chinese hydropower enterprises such as the Yangtze River Power Firm faces greater aggregate opportunity than aggregate threat, and possess more aggregate advantages than aggregate disadvantages. It suggests that the Yangtze River Electric should adopt the SO strategy, which incorporates external opportunities and internal advantages. The SO strategy for the Yangtze River Electric is summarized as: with hydropower generation as the core, develop in a rolling manner (or cooperatively develop) the water resources of the Yangtze River valley; take a low cost expansion road, by means of external expansion of scale and internal cost control; attempt to realize the unified operations of the stepped power stations of the valley, and to conduct combined and optimized dispatching; selectively form strategic alliance with thermal power stations, so as to compensate for each other's power market characteristics, and to exploit the power consumer market and to try to acquire more direct users, to find access to the multiple element relevant areas (upper and down streams), and to strive for coordinated development and bigger market share; and through the embodiment of its competitiveness, to display its maximization of both the corporate value and social value. Finally, the policy suggestions of implementing the abovementioned strategic program are arised.