China Huaneng Group, the country's largest electricity
producer, plans to spend as much as 250 billion yuan (US$31.25
billion) by 2010 to more than double its generation
While the bulk of the investment will go to coal-run
power stations, new hydro and wind plants will also be
The investment, budgeted to be spent between now and
2010, aims to add new facilities with a combined capacity of 50 GW
(gigawatts), according to Li Xiaopeng, president of the
Beijing-based power conglomerate whose total capacity stood at 43.2
GW at the end of last year.
"The new facilities to be installed will be
large-scale coal-fired units and renewable energy-fueled plants,
which highlight cost efficiency and environmental protection," Li
told China Daily in Beijing on the sidelines of a company
conference on Tuesday.
China, the world's fastest
growing economy and the second biggest energy consumer, has
prompted domestic power majors to shell out large investments to
scale up their capacity portfolios.
Newly commissioned generators have greatly eased
electricity shortfalls that plagued much of the country over the
past four years, and a viable supply-demand balance is expected
within a couple of years, industry analysts said.
Beijing-based Huaneng is aiming for a total installed
capacity of more than 80 GW, and a sales revenue of 140 billion
yuan (US$17.5 billion) by 2010.
The group's flagship Hong Kong-listed arm Huaneng
Power International Inc posted revenues of 19.8 billion yuan
(US$2.5 billion) in the first half of this year, and profits
increased by 29 percent year-on-year to 2.17 billion yuan (US$271
Although most of the newly constructed facilities will
rely on coal as the primary fuel over the next four years, Huaneng
has set an ambitious target to increase the proportion of renewable
energy sources such as wind and hydro in its overall
The company aims to use hydro and wind sources to
produce 10-15 percent of its energy by 2010, Hu Shihai, a senior
Huaneng official, said.
"Most of the renewable sources will come from water,
with a smaller percentage generated by wind farms," Hu
The parent firm Huaneng, rather than its listed
company, will be responsible for building the non-coal power
plants, a company official said.
The renewable energy scheme is in line with government
efforts to push the use of clean energy to meet its surging energy
needs and its aims to cut the country's heavy reliance on
According to data from the State-owned company,
Huaneng plans to build as many as eight hydro-power stations along
the Lancang River in southwest China's Yunnan Province.
Their total planned capacity will be 15.85 GW, a
portion of which will be in operation by 2010.
(China Daily August 31,