New | China power demand tipped for modest rise in 2015

China's power demand is expected to see a moderate pick-up this year from last year's 3.8 per cent growth - the slowest in 16 years - helped by monetary easing and infrastructure spending.

Gary Chiu, head of utilities and renewables research at Macquarie Securities, forecasts this year's power demand growth at 5 to 6 per cent.

"Given the low base effect from last year's weak number, the stimulus from late last year's rate cut and likely further cuts this year, demand should see a pick-up," he said.

Shan Baoguo, director of the Institute of Economy and Energy Supply & Demand at the State Grid Energy Research Institute, forecast this year's mainland power demand to pick up 6 per cent. China's GDP rose 7.4 per cent last year, missing the official target and at its slowest pace in 24 years.

Shan pointed to growth in mainland China's external trade which should benefit from recovery in the international economy led by the United States, faster growth in fixed-asset investment and domestic consumption.

The People's Bank of China in November cut interest rates for the first time in two years. The one-year lending rate was cut by 40 basis points to 5.6 per cent.