First Private Power-Generation Enterprise Shut Down in Shanxi Province

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The privately owned Shanxi Linfeng Hexi thermal plant, which has two 135-megawatt (MW) coal-fired units, was successfully dismantled in early December in northern China's Shanxi Province, marking that the structural adjustment of Shanxi's electric power industry has achieved another important step in energy conservation and emissions reduction. Representatives from the inspection team of National Development and Reform Commission's (NDRC) Energy Bureau, Shanxi's Provincial Development and Reform Commission, as well as other departments in Shanxi and Linfeng City attended the ceremony.

A thermal power plant with two 300-MW combined heat and power coal-fired units will be jointly built by the existing Shanxi Linfeng Hexi Thermal plant and China Datang Corporation (Beijing), one of China's top 5 nationwide power producers. The cooperation will be an experiment in carrying out the nation's policy of replacing small units with large units. "Although the shutdown has a direct loss of RMB 40 million ($5.4 million) to the power plant, we will have no loss in a long-term view," said the person in charge of the power plant. "Reduction in coal consumption of the new units could save about RMB 40 million every year, and we could have a better development space in the future."

According to the NDRC, China shut down 365 small thermal power units from January to November with a total installed capacity of 11,100 MW, which is 1,100 MW over the Chinese government's annual target of 10,000 MW. For units that were shut down in the first eleven months of 2007, the average single-unit capacity was 30 MW with an average coal consumption of 488 grams per kilowatt-hour and an average service life of 18 years.

The nation's top 5 power producers, local investment companies and local state-owned enterprises have shut down 199 small thermal power units with a total capacity of 8,510 MW, accounting for 76.7% of total shutdowns; 166 small thermal power units with a total capacity of 2,590 MW were shut down by private and other enterprises, accounting for 23.3% of total shutdown.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.