Surge in capacity growth set to deliver excess by 2005

Massive demand growth prompted by China’s booming economy has sparked capacity shortfalls across the country, with some 26 provinces and municipalities suffering from blackouts. Now, in its efforts to address the issue, China has launched a surge of new power plants that will reportedly deliver excess capacity is some regions by 2006. According to Sun Yaowei, a director at China’s Electricity Regulatory Commission, power supply in 2005 will meet demand, having faced its most severe power shortages in 2004 when Zhejiang and Jiangsu, China’s booming coastal provinces, suffered significant losses as manufacturers were forced to curb production because of power restrictions.