Electricity is an energy source that uses electrical power as its driving force. Invented in the 1870s, the discovery and application of electricity sparked the second industrial revolution, becoming one of the three major technological leaps in human history since the 18th century—and marking a turning point where technology fundamentally reshaped everyday life. The large-scale electric power systems that emerged in the 20th century stand as one of humanity’s most significant achievements in the history of engineering science. These systems consist of interconnected components, including power generation, transmission, transformation, distribution, and consumption, enabling the conversion of primary natural energy sources into electricity via mechanical devices. The electricity is then efficiently delivered to users through a network of transmission, substations, and distribution infrastructure.

Today is the age of the internet, yet our demand for electricity continues to grow—after all, we’ve invented more electricity-powered products like computers and home appliances. It’s undeniable that the constant emergence of new technologies has made electricity an essential part of daily life.

The primary methods of energy generation include: thermal power (using combustible fuels like coal), solar power, large-scale wind energy technology, nuclear power, hydrogen energy, and hydropower. In the 21st century, advancements in energy science will once again propel human civilization toward new heights of achievement. Fuel cells are a type of chemical power source that directly converts the chemical energy from fuels such as hydrogen, natural gas, coal gas, methanol, or hydrazine into electrical energy. Meanwhile, technologies for the efficient and clean utilization of biomass energy harness energy stored in organic materials derived from living organisms.

In the third quarter of 2010, hydropower profits saw a significant surge. Thanks to better-than-average water inflows during the quarter compared to previous years, hydropower generation increased markedly. As a result, total hydropower profits from June to August 2010 reached 20.6 billion yuan, representing a year-on-year growth of 96%. With the country’s increasingly positive stance on hydropower development becoming clearer, we anticipate that supportive government policies for hydropower projects will gradually be introduced. Consequently, the investment potential of hydropower companies is expected to become more evident over time.

The growth rates of profits in the power grid, hydropower, and thermal power sectors showed significant differences. The National Bureau of Statistics recently released industrial enterprise profit data for January-August 2010, revealing that the power generation and supply industry as a whole achieved total profits of 93.61 billion yuan, representing a year-on-year increase of 119%. Breaking down the figures by sector: thermal power generated total profits of 22.0 billion yuan, up 17.8% year-on-year; hydropower posted total profits of 24.84 billion yuan, surging 45.9% compared to the same period last year; and electricity supply saw total profits rise sharply by 655% to 38.0 billion yuan. Looking at month-on-month (QoQ) data for June-August 2010, the power generation and supply industry collectively earned 46.2 billion yuan in profits, marking a robust 37% increase from the previous quarter. However, when examining individual sectors: thermal power reported QoQ profits of just 5.05 billion yuan, a steep 56% decline; hydropower, meanwhile, delivered impressive gains of 20.64 billion yuan, soaring by 307% compared to the prior quarter; and electricity supply recorded QoQ profits of 16.81 billion yuan, up 28% from the previous three months. Notably, the substantial acceleration in profit growth within the electricity supply sector was largely driven by adjustments to sales electricity prices in the fourth quarter of 2009, coupled with steadily rising quarterly electricity consumption volumes. On the downstream side, among major electricity-intensive industries, all sectors except steel experienced significantly higher profit levels compared to the same period in 2007-2008—particularly the construction materials industry. Yet, when analyzing month-on-month trends, most high-energy-consuming sectors—including chemicals, building materials, and nonferrous metals—saw their overall profits decline slightly compared to the previous quarter, with the exception of the building materials sector.