A Research On The Impact Of "New Power System Reform"on The Performance Of State-owned Power Generation Enterprises And Their Measures Of Transformation And Upgrading

In 2015,China announced “Several Opinions on Further Deepening the Reform of the Power System” and six supporting documents,which marked the official starting point of a new round of power system reform in China(referred to as “new power system reform”).This paper studies the impact of the “new power system reform” on the operational performance of China’s state-owned power-generating enterprises,and their corresponding strategic choices.This essay provides an introduction of the important policy orientation of the “new power system reform”,and then put forward its main policy emphasis,as well as the mechanism of this reform on the performance of power enterprises using the R-SCP analysis paradigm.On this basis,we conduct an empirical analysis with the data of 28 state-owned power-generating enterprises in China from 2013 to 2019.The regression results of the DID model show that the “new power system reform” significantly reduced the profit of China’s state-owned power-generating enterprises,and thus this reform has brought along a significantly negative impact on the operational performance of the state-owned power-generating enterprises in China.Therefore,state-owned power-generating enterprises must actively seek countermeasures.We further use Jingneng Group as a case study,and with the SWOT framework we deeply analyze the operational difficulties and bottlenecks facing Jingneng Group under the “new power system reform”,as well as its advantages,disadvantages,opportunities and threats.On this basis,we investigate the strategic choices of Jingneng Group for transformation and upgrading,and we then put forward several policy recommendations applicable to China’s state-owned power-generating enterprises in general.