Huang's upbeat analysis is based on the operation of several new massive power generation projects in the province, greater power supply from the nation's western regions, and provincial authorities' endeavors to lower power consumption by adjusting the industrial structure.

In addition to the projects involving power generation units of 2,970 megawatts that have recently gone into operation, a batch of other projects involving power generation units of 12,000 megawatts will become operational in the province later this year, 8,595 megawatts of which are expected to begin operation before summer, the peak period for power consumption, he said.

And the power supply from the western regions of Guizhou, Yunnan and Guangxi is expected to surpass 14,000 megawatts this year, an increase of 20 percent from 2006. "That means the power shortfall in the province will be solved essentially in 2007," he said.

Official statistics indicate that Guangdong was short 4,500 megawatts of power supply in 2006.

He said that the province's efforts to lower power consumption by adjusting the industrial structure will also help to relieve pressure on the power supply.

Guangdong aims to lower energy consumption per 10,000 yuan gross domestic product by 16 percent by 2010 and the target for this year is a reduction of 4 percent.

The province has been highlighting high-tech industries, encouraging independent innovation and generally speeding up the development of the tertiary industry.

And it has placed controls on heavy power-consuming industries and encouraged existing enterprises to revamp equipment using power-saving devices.

At a forum held late last year in Guangzhou, Chen Shanru, director-general of the Guangdong Reform and Development Commission, said that the power generation units in Guangdong will reach 60,000 megawatts by 2010, a year-on-year growth of 15 percent from the 40,000 megawatts in 2006.

Chen said that the province would invest generously in power-related projects with an emphasis on clean power generation units in the 11th Five-Year Plan (2006-10).

The province's investment in power grid projects is budgeted at 125 billion yuan between 2006 and 2010, while the budget for nuclear power projects alone is set at 73.9 billion yuan, for the second-phase nuclear power project in Ling'ao, and the initial-phase nuclear power projects in Yangjiang and Taishan.

(China Daily 01/12/2007 page14)