China is planning a pilot scheme that, if adopted, would open electricity generation to more competition in an industry dominated by five national state power groups, and allow small independent operators to sell into the centrally-administered distribution grid, the South China Morning Post reported. The pilot project, planned for the northeastern provinces, aims to end the chaotic project development cycle that tends to result in volatile swings of undersupply and oversupply. Under the new system, the government would call for companies to submit tenders for projects based on their specified power needs. Currently, power generation companies submit plans to the government for approval.
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