Sichuan Projects Drive Rapid Growth in China's Hydroelectric Power

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Researched by Industrial Info Resources (Sugar Land, Texas)--In the last 15 years, China has become the second-largest energy consumer in the world, closely following the United States. By 2005, thermal power accounted for nearly 2,000 terawatt-hours (TWh) of power generation, while hydroelectric power hovered around 400 TWh. Coal-generated power is in the proverbial driver's seat, but hydropower is progressing fairly quickly, making up about 24% of the country's total power generation by the end of 2004.

Hydropower in China has tremendous potential for development. By the end of last year, hydroelectric power was generating more than 170 gigawatts (GW), but the river systems of central and southwestern China, particularly those of Sichuan and Yunnan, have the potential to produce 400 GW. As of now, only about 25% of China's potential is being tapped. Sichuan is rich in rivers that provide natural drops that are perfect for accommodating hydroelectric power stations. The Yalong River, a long secondary tributary of the Yangtze River, is a hotbed of development.

Ertan Hydropower Development Company Limited (Chengdu, China) is in the midst of constructing a massive hydroelectic project on the Yalong River in Sichuan. The $3.3 billion Jinping 1 unit is being constructed in association with MWH Asia-Pacific Limited (Christchurch, New Zealand) and Voith Hydro Shanghai Limited (Shanghai, China), a branch of the joint venture between Voith GmbH (Heidenheim, Germany) and Siemens AG (NYSE:SI) (Berlin, Germany). Not far from the Jinping 1 site, Ertan is constructing the Jinping 2 unit. When operational toward the end of 2014, both units will produce about 8,000 megawatts for the regional grid.

In 1996, the Electric Power Law went into effect and heralded the massive energy boom that has taken China to its present status. The law organized the management of the generation, transmission and distribution of electricity and heavily promoted the development of the energy sector. It also detailed the basic rights of investors, managers and consumers.

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