Power sector capacity growth slows to 10.3pc
Power companies on the mainland markedly slowed their capacity expansion last year as the industry faced the worst demand slump in eight years in the last quarter.
Total industry generating capacity last year grew 74.26 gigawatts or 10.34 per cent to 792.53 GW, including 16.69 GW at plants that were now closed, the China Electricity Council said.
Growth slowed from 14.4 per cent in 2007 and 20.3 per cent in 2006, and missed the council's forecast of 800 GW made in November.
Still, power capacity growth on the mainland is the world's fastest, having exceeded 500 GW in 2005, 600 GW in 2006 and 700 GW in 2007.
Unlike previous years, virtually the entire power generation sector ran at a loss on high coal prices and government power price control.
A slump in energy demand as the global economy slowed had also led to declines in plant utilisation.
Last year's power consumption grew 5.23 per cent to 3.42 trillion kilowatt-hours, down from a 14.4 per cent rise in 2007 and 14 per cent in 2006. Consumption dropped 8.14 per cent in November and 8.93 per cent last month as the economic downturn curbed exports and output of heavy industries - the largest consumer of power.
Industry plant utilisation hours fell 6.72 per cent to 4,677 hours last year after easing 3.6 per cent in 2007.
A bright spot is the speeding up of the development of clean energy. The share of coal-generated power fell to 80.95 per cent of total output last year from 82.87 per cent in 2007, while the share of hydropower rose to 16.4 per cent from 14.9 per cent.
Output at hydropower plants rose 19.5 per cent last year, outpacing a 2.17 per cent growth in coal power generation.
The trend towards cleaner energy development reflected on plant additions last year, when hydropower capacity surged 15.68 per cent, against 8.15 per cent for coal plants.
Wind power capacity soared 111.48 per cent, but still formed only 1.1 per cent of total industry capacity.
A utilities analyst at a United States brokerage said he expected this year's industry plant utilisation rate to decline by a similar rate as last year's, while profits will depend on results of coal contract negotiations.
The power sector was projected to be in the red to the tune of more than 70 billion yuan (HK$9.4 billion) last year as second-half power price increases and coal price declines came too late to offset earlier losses.
