Study On Financing Management Of Hydropower Development In LCJ Watershed

Energy source, as a material basis for the progress of human civilization, has always been a major strategic issue. According to the energy classification, electric power has been considered as the most important secondary energy and the symbol of energy industry, playing a crucial role in the energy balance. Meanwhile, hydropower, as a clean and renewable energy, determines the proportion of the supply of clean energy in China and it is of great significance to optimize the energy structure as well as keep energy security. In the Air Pollution Prevention and Control Action Plan of China, hydropower is expected to be more momentous in coping with climate change.With national deficiency in electricity, thermal power has gained rapid development due to less investment and high efficiency sine 1980 s, resulting in people’s eagerness to achieve success and get instant benefit in power construction and inattention to the significance of hydropower, which makes it lag behind and weak in the energy development. Meanwhile, the factors that hinder the development of hydropower cover both the social investment preference and financing management. From the perspective of capital structure, the state-owned capital account for the main proportion in the investment, while loan and self-raised funds are dominate in the resource structure,. Therefore, the excess proportion of indirect financing and improper structure of capital source have been the bottleneck for hydropower development.After 13 years of development since 2014, profits of the first electricity generation of LCJ Company has satisfied the capital demand of 20% programs.From the capital level, LCJ river basin hydropower development has gained the factual rolling development. The cascade rolling development trend of Operation, Construction and Reservation has been formed basically.Based on the summary of LCJ River hydropower development and financing management, this paper analyzes the recent situation, characteristics and existing problems of the financing way. Combined with the current national policy and the LCJ hydropower development sequence, it put forward some advice to optimize the financing options, providing reference for the capital security in the development of Yunan and Tibet section of upstream LCJ River.