Strong power demand growth seen as industries step up output

Growth in the mainland's demand for power is expected to accelerate markedly this year, thanks to faster economic expansion and a revival in industrial production.

Growth in electricity demand slowed to between 5 per cent and 6 per cent in 2008 and last year as the mainland economy slowed down amid the global recession. Electricity demand will grow between 6 per cent and 12 per cent this year, according to eight brokerage analysts polled by the South China Morning Post.

Last year's growth was 5.96 per cent, the National Energy Administration said yesterday. This compares with 5.2 per cent in 2008, 14.4 per cent in 2007 and 20.3 per cent in 2006.

Year-on-year growth in monthly power demand started to fall from April 2008 and slipped into negative territory in October that year, when the global financial crisis set in. After bottoming in December, it turned positive in June last year.

Demand returned to double-digit percentage growth in September and surged to 27 per cent in November as Beijing's economic stimulus measures took effect throughout the economy.

While overall growth in power demand last year was similar to 2008, the agricultural sector's demand growth rose to 7.9 per cent from 1.9 per cent the previous year, and that of the services sector climbed to 12.1 per cent from 9.7 per cent.

Demand from the industrial sector, which made up 85 per cent of total power demand, grew 4.2 per cent, against 3.8 per cent in 2008.