Power distributor expects generation capacity to grow 15.3pc this year
State Grid Corp of China, the monopoly power distributor in all but five southern provinces, has forecast a 15.3 per cent surge in the nation's generation capacity and an 11 to 12.5 per cent rise in power demand this year.
The figures add weight to concerns that China's power construction binge will again result in excess capacity a decade after the previous over-supply in 1998, dashing hopes that the industry's falling plant usage rate will rebound this year.
State Grid forecast in a report that national consumption would grow this year to between 3.13 trillion and 3.18 trillion kilowatt-hours, according to State Grid News, which is produced by the power firm.
This follows 14 per cent growth last year to 2.82 trillion kWh, the China Electricity Council said.
The company expects 95 gigawatts of new generation capacity to come on stream this year, raising the total to 717 gigawatts by the end of the year, after capacity surged a greater than expected 105 gigawatts, or 20.3 per cent last year to 625 gigawatts.
Analysts previously expected an additional capacity of 85 gigawatts last year and 75 gigawatts this year.
