But huge up-front investment and low operating costs have led to the criticism of the plant. Zhang said that if the problem is not solved, the development of China’s hydropower industry will be affected.
Zhang said that at the end of 2008, China had 170 million kilowatts of installed hydropower capacity, contributing 21.6% of the country’s total capacity. In 2008 hydropower output was 563 billion kilowatt hour, 16.4% of total output.
Price has been one of main obstacles to developing China’s hydropower industry. Zhang said, China has adjusted some unreasonably low prices, but for historical reasons, the price of hydropower remains lower than that of thermal power.
At present hydropower price is set at 0.2 yuan to 0.3 yuan per KWH compared with a thermal power price of 0.4 yuan to 0.5 yuan per KWH, which means the value of different energy types is not balanced, ex-general manager of the Three Gorges Project Development Corporation Lu Youmei said.
Zhang Guobao added, Following the principle of ‘Same product, same price’, the price of hydropower and thermal power should be the same. Increased costs should be reflected in the sale price, which will affect the interests of both power grid corporations and power generating companies. As a result, the adjustment of hydropower prices will be complex and difficult.
