Jiuzhaigou Hydropower Development Co. Ltd.: A Green Footprint in Electrical Energy Exploitation

Managers at the Chinese state-owned hydropower development company Jiuzhaigou Hydropower Development Co. (JHDC), in Sichuan Province, were considering using photovoltaic (PV) power generation in the wake of carbon-emission regulations. After JHDC was founded in 2003, it built five hydropower stations, its original and traditional power-generation mode. When China proposed its double-carbon policy, JHDC’s general manager realized it was time to explore new approaches to electricity generation, and the breeze and sunshine of the Jiuzhaigou Valley led him to consider wind and PV power. Following a lengthy discussion among its board of directors and shareholders, JHDC made a strategic decision to expand its capacity by embracing new methods of electricity generation. Now the key question was, What was the best strategy for JHDC, as a traditional utility company, to adopt this new technology?

This case can be used as part of undergraduate and postgraduate courses on sustainable finance, corporate social responsibility, and strategy management. It illustrates the process of making a decision at a Chinese hydropower development company and explains the concept of double carbon and why it was proposed and implemented in China. It also describes the development of different plans to explore photovoltaic (PV) power alongside hydropower and critically discusses PV technology and hydropower generation. After working through the case and assignment questions, students will be able to do the following:<br> <ul><li>Explain the double-carbon concept, the global efforts to reduce carbon emissions, the regulatory climate risk, and the dynamics of the electricity sector in the world’s second-largest economy.</li><li>Describe modes of electricity generation and the implications of these, especially the implications of new approaches.</li><li>Critically evaluate a utility company’s market positioning, advantages and disadvantages, and challenges.</li><li>Develop strategies for dealing with the transition to renewable energy sources.</li><li>Identify the possible advantages and disadvantages of different financing strategies.</li><li>Identify potential regulatory risks associated with the implementation of PV power plants.</li></ul>

• sustainable finance
• corporate social responsibility
• strategy management
• double-carbon concept
• carbon emissions regulations
• hydropower development company
• Jiuzhaigou valley
• wind power generation
• photovoltaic (PV) power
• electricity generation
• board of directors
• shareholders
• global efforts
• regulatory climate risk
• electricity sector
• renewable energy sources
• financing strategies
• regulatory risks
• utility company
• market positioning.