China will not experience the same large-scale power shortages
that have hit the nation over the past several years this
summer.
The country will reach a balance between energy supply and
demand in the second half of the year, the National Development and
Reform Commission (NDRC), the country's top economic planning body,
said Thursday.
"With a number of new power stations coming on line, China will
generally not see power shortages this summer," Zhang Guobao,
vice-chairman of the NDRC, told a press conference at the State
Council Information Office.
"And in electricity thirsty areas such as
Zhejiang and
Guangdong provinces, power shortages will not occur," he
added.
The installed capacity of new power stations that came online in
the first four months of this year alone amounts to 22.39
gigawatts, with total national capacity reaching 531 gigawatts.
With other power stations in construction Zhang said capacity
will rise by a total of more than 70 gigawatts by the end of the
year.
China's power industry has seen double-digit growth over the
past four years, with production rising 14.9 per cent between 2004
and 2005 alone.
But with economic growth pushing electricity demand beyond
generation capacity the nation has experienced power shortages
since 2002.
In a drive to promote efficiency the government will close small
coal-fired generators, whose outdated technology is uneconomical,
said Zhang.
Coal-fired generators with a combined capacity of 15 gigawatts
will be closed over the next five years.
Zhang said the government also planned to link the electricity
pricing system more closely to raw material movements.
Because of the increasing cost of coal, the government approved
a mechanism linking coal and power prices in 2004.
The mechanism stipulates that if the price of coal rises by more
than 5 per cent in any six-month period, electricity prices can be
adjusted.
It allows for 70 per cent of coal price increases to be
transferred to end-users. Power generation firms bear the remaining
30 per cent.
Coal power plants account for about 70 per cent of China's power
industry, but the government has vowed to promote clean energy
sources, such as nuclear power, to meet electricity needs.
The government aims to increase the capacity of nuclear power
stations to 40 gigawatts by 2020, accounting for 4 per cent of
total capacity.
China has opened bidding for companies to build its third
generation of nuclear power stations, which will be located in
Sanmen, in East China's Zhejiang Province, and in Yangjiang, in
South China's Guangdong Province.
The government is still in negotiation with foreign companies
hoping to build the new nuclear plants, said Zhang.
Bidders involved in the talks so far include Paris-based Areva,
Pittsburgh-based but UK-owned Westinghouse Electric Company and
Russia's AtomStroyExport.
(China Daily June 9, 2006)
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