China's Power Industry, Investment And Financing Choice

Electric power industry is the whole foundation and pulse of national economy. The electric power industry system is composed of power plants, power transmission networks, electric distribution networks and electric user and it Include four vertical and relevant stages: Generate electricity, transmit electricity, distribution and power supply.. Because of externalities and natural monopolies, all countries exert regulation to financing and investment of electric power industry, there is no exception of our country. With the market-oriented reform of electric power industry, investment and financing get the request too.This paper explore the financing way choose of electric power industry, that regarded the theory of regulation and financing theory as the foundation and according to the market-oriented reform of the electric power industry. Under the development goal of " separate the produce and network, competition for the market", it should be pay close attention to how to investment and financing Because of many- years reform of our country' s electric power industry, there have many kinds of financing way already, which has promoted the development of electric power industry greatly. Wanting to develop, electric power industry should adopted different approaches. We should rely mainly on national policy financing to the electric net financing with monopoly, and to the production financing of electric power industry we can adopt the model of that endogenous financing associate other source financing, direct financing and associate financing indirectly.The paper comprises 4 chapters and 1 conclusion. The foreword has briefly introduced the general situation of development of electric power industry. Chapter 1 presents the theories of corporation capital structure and the theories of regulation. Chapter 1 also discusses the differentiated methods of the enterprise financing styles and structure. Chapters 2 recommend regulation and its reasons of financing and investment of the electric power industry in China and foreign countries. Chapter 3 Introduced market-oriented goal and reason of reform of electric power first, analyzed financing of electric power electric wire netting and electric power production rely on the issue on this basis. Chapter 4 introduce various kinds of financing ways of electric power industry first, then analyses the existing problem and reason in financing and investment of electric power industry. On the basis of Analyses, we make a conclusion finally: development model of financing in electric power industry should associate many kinds of financing ways. The last part is the conclusion of this paper. It advances some issues worth to be explored further.