This paper describes the development of China's power industry, present situation, environmental influences and potential benefits of regional power grid interconnections in China. Power plants in China are mainly thermal, burning fossil fuels especially coal which emit a great deal of pollutants and greenhouse gases such as SO2, NOx and CO2. China leads all other countries in emissions of SO2, CO2, and the power industry is the largest contributor to these emissions. There are a number of environmental benefits through regional power grid interconnection. That is, the construction of small electricity generation capacity would be avoided; natural resources would be used to generate electricity on a regional scale; and generating sources can be separated from centers of electricity use, which will decrease emission of pollutants and greenhouse gases and help to reduce human exposure to elevated air pollutant concentrations. Therefore, gradually enlarged power grids, and power grid interconnection, should be part of the general pattern of power system development in China. (c) 2004 Published by Elsevier Ltd.