Power producer scraps coal-fired Guangdong plant
Guangdong Electric Power Development will scrap construction of a small coal-fired power plant to divert resources to more effective use.
The company said it had terminated construction of the 125-megawatt Binsha power plant in which it was to take a 55 per cent stake with investment so far of 550,000 yuan (about HK$511,830).
A company official said yesterday the firm had clinched an agreement to build the power plant - its smallest - in 1993.
More emphasis had been placed on the following years to build bigger plants.
'We hope to concentrate our efforts on bigger plants to achieve economy of scale,' he said.
The official said proposals for the provincial grid's reduction of annual offtake from its 100 per cent held Shajiao A plant from 3.6 billion kilowatt hours to 2.75 billion kWh this year would be put forward for approval when shareholders met on Tuesday.
The reduction would effectively reduce its revenue. However, the official said the drop in offtake would be offset by the company's future ability to raise tariffs.