State Grid Corporation of China

On the mainland, power prices are set by the state, but State Grid gives priority to generators that are less polluting. Photo: Bloomberg

China's State Grid readies for possible power deregulation

State Grid Corp of China's acquisition of power distribution assets in Australia made headlines last month because of the deal's size, but the strategic value of the transaction to the mainland's monopoly power distributor is the chance it gives the firm to gain first-hand knowledge of how deregulated power markets function, analysts say.