mail-centred
company
into
a
global,
full-spectrum logistics provider. Deutsche Post
also made more than €8 billion from divestments
in 2004-10, mainly from the sale of Postbank,
raising funds for further acquisitions.
In more recent years Deutsche Post has
focused on innovation, establishing innovation
forums and creating a dedicated innovation unit
within DHL. In 2010, Deutsche Post released
E-Postbrief (E-mail letter) as a digital alternative
to physical letters, although its popularity is hard
to determine as usage figures have yet to be
released. More recent innovations include drone
deliveries, which are completing a third round of
testing, electric postal delivery vehicles and a
real-time supply chain management system.
DHL Innovation Centers act as forums to
encourage collaboration between customers and
partners to develop new products and services.
Deutsche Post has made a remarkable transition that has allowed it to weather the decline in
its previous core product (domestic letters) and is
now positioned as a global leader in growing
logistics markets. However, this strategy of rapid
diversification is not without drawbacks; moving
so rapidly into new ventures can lead to heavy
losses. However, this should be accepted as a risk
of such bold strategies. Deutsche Post discontinued its domestic express offering in the USA
and incurred $3.9 billion in restructuring costs as
a result in 2009.
2.2 Electricity Grids in Transition
2.2.1 China’s Network Arrangements
(1) Overview
China’s current network arrangements provide
grid access to 100% of its vast and widely dispersed population. In 1990, 89% of the population had access to electricity; by 2014, 100%
were connected. In the same period, electricity
consumption per person increased eightfold,
from 511 kilowatt-hours (kWh) to 4,047 kWh
per person, which is half of the average OECD
electricity consumption of 8,004 kWh per
person. This vast increase in electricity access
and consumption has been delivered through one
of the largest and most reliable electricity networks in the world.
China has abundant energy reserves, such as
hydropower and coal, to serve its rapidly growing electricity demand, but these lie far from
large demand centres. The geographically
uneven distribution of energy resources and
demand centres limits the flexibility of the system to respond to imbalances in supply and
demand. It also requires considerable investment
in long-distance transmission networks.
The Chinese transmission system is organised
on administrative lines and composed of
provincial networks, with limited regional and
national integration. Detailed planning, investment and operation are primarily coordinated at
the provincial level, with a smaller degree of
coordination at the level of the national network.
The institutional framework of the Chinese
electricity sector is complex, as shown in Fig. 24.
Network planning follows a top-down process. The National Development and Reform
Commission (NDRC) specifies general network
investment in five-year planning cycles, after
which provincial governments and local NDRC
branches finalise these plans for their administrative territory. The State Grid Corporation of
China, the state-owned electric utility, invests in
interconnectors between regions, while the
regional grid companies invest in interconnectors
between provinces. Provincial grid companies
focus on the bulk transmission network within
their provinces. Subsidiaries of grid companies at
the prefectural and county levels are responsible
for distribution networks.
Electricity pricing follows a similar top-down
process. The regulatory bodies set the wholesale
and retail prices of electricity, which can then be
amended by provincial governments to achieve
policy and economic development goals.
China explores alternative approaches for
restructuring and marketisation of its electricity
sector. In 2014, the NDRC launched a pilot
project in Shenzhen to accumulate experience for
wider adoption of performance-based regulation
in China. The pilot project aimed to incentivise
Special Report 1: A Study of China’s Energy Supply Revolution
79
company
into
a
global,
full-spectrum logistics provider. Deutsche Post
also made more than €8 billion from divestments
in 2004-10, mainly from the sale of Postbank,
raising funds for further acquisitions.
In more recent years Deutsche Post has
focused on innovation, establishing innovation
forums and creating a dedicated innovation unit
within DHL. In 2010, Deutsche Post released
E-Postbrief (E-mail letter) as a digital alternative
to physical letters, although its popularity is hard
to determine as usage figures have yet to be
released. More recent innovations include drone
deliveries, which are completing a third round of
testing, electric postal delivery vehicles and a
real-time supply chain management system.
DHL Innovation Centers act as forums to
encourage collaboration between customers and
partners to develop new products and services.
Deutsche Post has made a remarkable transition that has allowed it to weather the decline in
its previous core product (domestic letters) and is
now positioned as a global leader in growing
logistics markets. However, this strategy of rapid
diversification is not without drawbacks; moving
so rapidly into new ventures can lead to heavy
losses. However, this should be accepted as a risk
of such bold strategies. Deutsche Post discontinued its domestic express offering in the USA
and incurred $3.9 billion in restructuring costs as
a result in 2009.
2.2 Electricity Grids in Transition
2.2.1 China’s Network Arrangements
(1) Overview
China’s current network arrangements provide
grid access to 100% of its vast and widely dispersed population. In 1990, 89% of the population had access to electricity; by 2014, 100%
were connected. In the same period, electricity
consumption per person increased eightfold,
from 511 kilowatt-hours (kWh) to 4,047 kWh
per person, which is half of the average OECD
electricity consumption of 8,004 kWh per
person. This vast increase in electricity access
and consumption has been delivered through one
of the largest and most reliable electricity networks in the world.
China has abundant energy reserves, such as
hydropower and coal, to serve its rapidly growing electricity demand, but these lie far from
large demand centres. The geographically
uneven distribution of energy resources and
demand centres limits the flexibility of the system to respond to imbalances in supply and
demand. It also requires considerable investment
in long-distance transmission networks.
The Chinese transmission system is organised
on administrative lines and composed of
provincial networks, with limited regional and
national integration. Detailed planning, investment and operation are primarily coordinated at
the provincial level, with a smaller degree of
coordination at the level of the national network.
The institutional framework of the Chinese
electricity sector is complex, as shown in Fig. 24.
Network planning follows a top-down process. The National Development and Reform
Commission (NDRC) specifies general network
investment in five-year planning cycles, after
which provincial governments and local NDRC
branches finalise these plans for their administrative territory. The State Grid Corporation of
China, the state-owned electric utility, invests in
interconnectors between regions, while the
regional grid companies invest in interconnectors
between provinces. Provincial grid companies
focus on the bulk transmission network within
their provinces. Subsidiaries of grid companies at
the prefectural and county levels are responsible
for distribution networks.
Electricity pricing follows a similar top-down
process. The regulatory bodies set the wholesale
and retail prices of electricity, which can then be
amended by provincial governments to achieve
policy and economic development goals.
China explores alternative approaches for
restructuring and marketisation of its electricity
sector. In 2014, the NDRC launched a pilot
project in Shenzhen to accumulate experience for
wider adoption of performance-based regulation
in China. The pilot project aimed to incentivise
Special Report 1: A Study of China’s Energy Supply Revolution
79