China Closes Over 1,000 MW of Old and Small Thermal Power Units in the First Quarter

---

Researched by Industrial Info Resources (Sugar Land, Texas). Following a number of large-scale generating units put into operation, the power supply and demand situation in China has been fully alleviated since the beginning of this year, which has created a historic opportunity to shutdown small thermal power units. Over 1,000 MW of old and small thermal power units has been shutdown in the first quarter. The “replacing small units with large units” policy in China is going smoothly.

The top five power producers in China, China Huaneng Group, China Datang Corporation, China Huadian Corporation, China Guodian Corporation, and China Power Investment Corporation (CPI), are leaders in the process. The top five power producers have promised to shutdown over 22,260 MW of small thermal power units during the “eleventh five-year plan” (2006-2010). The working strength for shutting down small thermal power units is especially high in Huaneng, Datang and Huadian.

In addition to shutting down 63 small thermal power units totaling 2512.25 MW, Huaneng plans to further shutdown an additional 1,105 MW of small thermal power units, which brings the total number of units to be shutdown to 80 with a total of 3,648.25 MW, of which 2,254 MW will be shutdown in 2007. By the end of March 2007, Huaneng shutdown 29 small thermal power units totaling 766.25 MW.

Datang also adjusted the original shutdown plan from 74 units (4011.5 MW) to 92 units (4729.7 MW) during the “eleventh five-year plan,” and plans to shutdown all the units it planned to close in the latter three years of the “eleventh five-year plan” in 2007. This makes the 2007 total capacity of small thermal power units to be shutdown 2,567MW.

Since a conference was held on “replacing small units with large units” February 14, the shutdown process has accelerated in Huadian. Eight small thermal power units (680 MW) have been closed by Huadian in the first quarter of 2007. The target for Huadian is to shutdown 4,845 MW of small thermal power units during the “eleventh five-year plan.”

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.