A 4.95 billion yuan (HK$4.63 billion) power plant to be built in Inner Mongolia will increase supply to the electricity-starved Beijing, Tianjin and Tanggu (BTT) region where H share Beijing Datang Power Generation operates.
Analysts said the proposed plant, with a planned generation capacity of 1,200 megawatts (MW), would not affect Beijing Datang's sales in the short term because it would take about three years to build.
The plant, to be located in Xilin Gol, about 200km from Beijing, would be the west-east power transmission project's main source of electricity supply to the BTT region, Xinhua said.
The BTT and Guangdong regions have some of the tightest power supplies in China, with a reserve margin of only 5 per cent or less, according to an HSBC research report.
Such low reserve margins result in shortages during certain periods throughout the year.
Under the west-east programme, power will be sent from Inner Mongolia and Shanxi province to the BTT region through its northern channel.
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