China: King coal losing his power in electricity industry

China is likely to continue cutting investment in coal-fired power plants as the lackluster economy may result in a power glut this year, but it will increase its efforts to build more nuclear reactors and wind farms to improve its energy mix, according to Zhang Guobao, head of the National Energy Administration (NEA).

Speaking at a recent meeting on the nation’s energy strategy, Zhang said the country’s investment in the power industry is expected to reach 580 billion yuan this year.
However, in its power industry investment forecast published on Feb 14, the China Electricity Council (CEC), a government-backed industry association, said investment may hit 650 billion yuan this year, encouraged by the government’s 4 trillion yuan economic stimulus package.

According to the CEC forecast, investment in power generation may remain around 300 billion yuan, with more of it going to sectors such as nuclear power, while the remaining 350 billion yuan will be assigned to build and upgrade power grids.

China Daily