CEC Issues Annual Operation Report for China's Power Industry

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Researched by Industrial Info Resources China (Beijing, China)--In 2011, because of the impact of a series of factors such as the reduced output from hydropower, the shortage of coal, the imbalance in grid and power source structure, and the rapid growth in power demand, China's power supply and demand remained very tight, with serious shortages occurring in some regions and periods. In the country, 24 provincial-level grids experienced power shortages, with the maximum shortage surpassing 30 gigawatts (GW) in 2011, according the annual operation report for China's Power Industry, issued on February 3.

In 2011, China's Power Industry showed a strong demand in power consumption, with increasing difference between different regions. In 2011, China's accumulative overall social power consumption reached 4.69 trillion kilowatt-hours (kWh), an increase of 11.7% year over year. Of which, power consumption in the primary industries (farming, livestock husbandry, fisheries, etc.) increased 3.9%; that of the second industries (manufacturing, mining, electricity and water production, etc.) rose 11.9%. Power consumption in the tertiary industries (hotels, insurance, services, etc.) rose 13.5%. Power consumption of household of urban and township residents was reduced to 10.8% and 8.2%, respectively. In view of different regions, the accumulative power consumption in the east, central, west and northwest regions increased 9.6%, 12.1%, 17.2% and 7.9%, respectively.

In 2011, China's power supply capability was further enhanced with improved proportion from clean energy, and the growth in thermal power slowed down. In 2011, the total installed capacity of power plants newly commissioned in China increased to 90.41 GW. Of which, the installed capacity of hydropower added 12.25 GW, that of thermal power added 58.86 GW, that of nuclear power added 1.09 GW, and that of wind power added 16 GW.

At of the end of 2011, the installed capacity of power equipment in plants with a generating capacity of more than 6 megawatts (MW) reached 1,050 GW, an increase of 9.0% year over year. Of which, the installed capacity of hydropower reached 230 GW, an increase of 6.7% year over year; that of thermal power reached 760 GW, an increase of 7.9%; that of nuclear power reached 11.91 GW, an increase of 10.0%; that of wind power reached 47 GW, an increase of 43.7%.

The proportion of clean energy reached 27.5% of the total, which was 0.9 percentage point higher than 2010. In 2011, China's investment in power source construction reached $58 billion. Of which, the infrastructure investment in hydropower reached $14.69 billion, that of thermal power reached $16.47 billion; that of nuclear power reached $11.57 billion; and that of wind power reached $12.96 billion. In 2011, China's investment in grid construction reached $57.54 billion. The proportion of investment in thermal power was reduced to 28.4% of the total, and the amount was about 46.4% of the amount in 2005.

In 2011, China's inter-province power transmission capacity maintained steady growth, but the capacity was still insufficient, which caused the coexistence of a power shortage and a power surplus between different provinces. Moreover, the reduced output from hydropower also largely disturbed the inter-province power transmission and the power balance.

(Note: Investment is calculated based on the exchange rate of $1=CNY 6.4 Chinese yuan). Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.