China to spend $1.7 trillion on power in the next decade

• 13 years ago (2010-12-24)
• Junior Isles

Asia 892 North America 1021

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China, the world’s largest energy user, may spend 11.1 trillion yuan ($1.7 trillion) in the next decade building electricity infrastructure, the 21st Century Business Herald has reported, citing a research report by the China Electricity Council.

China may boost investment in power grids and electricity stations to 5.3 trillion yuan from 2011 to 2015, up 68 per cent compared to spending between 2006 and 2010, the newspaper said, citing deputy director at the council Wei Shaofeng. Investment may also rise to 5.8 trillion yuan from 2016 to 2020, the report said.

Power generation capacity may rise 8.5 per cent annually to 1437 GW by 2015 and to 1885 GW by 2020, according to the report. Power generation by non-fossil fuels will account for 33 per cent of the total by 2015 and 36.3 per cent by 2020, it said.

The government may need to raise electricity prices annually by an average 3.5 per cent over the next 10 years to ensure power producers get an 8 per cent annual return on net assets, the report said.