Strong line needed on power
10/10/2005 15:05
Strong, comprehensive measures are needed to address China's power shortage,
analysts say. Those measures should include termination of reckless projects
to cool the economy, the analysts say. And to ensure a healthy sustainable
development, the structure of industries as a whole and the mix of energy
sources should be optimized. Frugal use of energy should become
compulsory. In spite of negative effects on the environment, coal will remain
the major energy source. Coal-fired power made up 73.72 percent of China's
total power consumption in 2004. Last year's coal output was 1.956 billion
tons, of which 800 million was produced by stretching the capacity. In
future, the analysts say, the share of coal in the energy portfolio will decline
gradually. The Yangtze River Delta is one of the richest areas in China. But
the region is poor in energy resources and in the last couple of years this
economic engine house of the country was strangled by repeated power
cuts. Supply is most stretched in the summer peak. It is not unusual for a
factory to operate only four days a week. In Zhejiang Province, which was
hardest hit, blackouts averaged 11.32 days a month in the first half of
2004. Escalators in commercial centers were stopped. Half the streetlights
were off. And in some areas, even traffic lights were temporarily turned
off. The power shortage is not restricted to the Yangtze Delta. Statistics
show 24 provincial regions were forced to ration power in 2004. This has
occurred despite unprecedented growth of energy production, which was even
faster than GDP growth in the period 2001-2005. Last year energy output
reached the equivalent of 1.97 billion tons of coal, up 15 percent on a year
before. In terms of installed power generating capacity, the growth rate was
14.5 percent. That's a world record. Rising living standards have
propelled demand, but even with major cities like Beijing and Shanghai, the per
capita consumption of electricity is way below that of developed
countries. The analysts say the major factor for the energy shortage is the
overheated and improperly structured economy, accompanied by a wasteful style of
energy use. "The fast growing economy is a basic cause for the power
shortage," says Zhou Dadi, director of the Energy Institute under the National
Development and Reform Commission. The problem is partly institutional.
China's Ministry of Energy was scrapped more than a decade ago. The tasks of
reserves prospecting, production, transport and sales of energy are divided
among different ministries. Only months ago the Energy Bureau under the NDRC
was solely responsible for the overall planning and coordination of efforts in
the nation's energy development. Given an inferior status and insufficient
manpower, the bureau had not performed effectively. A high profile Leading
Group on Energy Development was inaugurated in May. It comprises 13 top
officials from government departments and the military, headed by the premier
and two vice premiers. A dedicated LGED Office of under-ministerial level was
set up simultaneously. The two new government arms are expected to deal with
strategic energy issues and coordinate efforts more effectively in the coming
years.
Xinhua
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