ABSTRACT
Hydropower has always been the second largest source of electricity in China. The development of large hydropower plants has always been centrally planned and dominated by state-owned corporations. In the early years of the Communist China, the development of hydro-power was much slower than coal-fired power. Under the planned economy, the government controls lands, housing, education, employment, and the rationing of food and many other necessities. Such controls made it very difficult for people to refuse involuntary resettlement. After Mao Zedong's death, the new leader Deng Xiaoping focused his attention on economic development. The Lubuge dam was the first Chinese hydropower project built with loans from the World Bank. The Ertan hydropower project was the first Chinese hydropower project to be entirely contracted through international competitive bidding following the FIDIC rules. China is a latecomer in utilizing pumped hydroelectric stations for energy storage, but it is catching up very quickly.
