Shandong output up a meagre 7pc in first half
H share Shandong International Power Development (SIPD), the province's largest independent power producer (IPP), posted 7.74 per cent year-on-year growth in generation volume in the first half, much lower than the provincial growth of 14.21 per cent.
Analysts said the relatively weak performance compared with rivals operating in other provinces was due to a 20 per cent rise in Shandong's generation capacity in the past year, which diluted growth for operators of existing plants such as SIPD.
Completion of new plants resulted in lower utilisation of existing plants in Shandong as power demand growth of 14 per cent was not sufficient to keep all plants - new and existing - running at previous levels.
SIPD said it produced 14.66 billion kilowatt-hours (kWh) in the first half, compared with 13.61 billion kWh last year.
The output performance in the second quarter - up 12.06 per cent year on year - was better than the first quarter's 3.28 per cent.
The growth in output was due to two generating units that began operation last September. Together they account for 15 per cent of SIPD's capacity.
Stripping out the contribution from the two 135-megawatt (MW) generating units at its Laicheng plant, Core Pacific-Yamaichi estimated the company's first-half output fell 6 per cent year on year. First-half capacity utilisation declined 8.47 per cent year on year to 2,496 hours.
Core Pacific-Yamaichi expected SIPD to see more tough times in the second half, with the province's capacity further increasing 20 per cent.
Recent additions to Shandong's power market include CLP Holdings' joint-venture 600 MW plant and fellow H share Huaneng Power International's 660 MW plant.