GUANGDONG officials rushed yesterday to clarify a ban on new thermal power plants in the Pearl River Delta amid concerns from investors.
The province's Environmental Protection Bureau, which announced the ban to reduce acid rain in the delta, said it would mainly restrict the construction of small power plants of 100 megawatts or less.
Large-scale power plants and those projects that had already been approved would be allowed to proceed, said Li Zhiyan, a spokesman in the bureau.
'In recent years, thermal power plants in the delta region have grown raising emissions levels of sulphur dioxide and exacerbating the problem of acid rain,' Mr Li said.
Some investors have tried to evade the central government's efforts to cut spending on capital construction by building several small power plants, which can be approved at the provincial level. The small plants are less efficient than larger ones.
Mr Li said that large-scale coal, oil and gas power plants would also face a more rigorous application process.