Chinese power producers see losses in '09
[2008-12-23 17:04:27]
China's thermal power producers, which expected to lose more than $10.2 billion this year, may face an even tougher 2009 because of slower growth in electricity demand, industry officials warned.
The world's second-largest energy consumer may use only 3 percent more electricity next year as the economy cools, compared with a double-digit growth rate annually over past years, says Pan Ersheng, a researcher with the State Grid Corporation of China.
China's economy expanded at the slowest pace since 2008 in the third quarter as export orders shrank and industrial production waned.
Figures from China Electricity Council shows that 37 percent of the country's electricity demand are from four coastal provinces and a municipality, namely Shandong, Jiangsu, Zhejiang and Guangdong provinces and Shanghai, all of which are the country's biggest exporters.
The Chinese government unveiled a 4-trilion-yuan stimulus plan to spur the economy as the world slowed down into a recession. However, the stimulus plan will not put an immediate stop to the power generators' losses.
However, China's power demand may rise by 5 percent under the most optimistic scenario, according to Pan.
China's power generation fell by 4 percent to 264.5 billion kilowatt-hours in October, the first decline in more than three years, as a slowdown in the world's fourth-largest economy erodes demand, according to the National Bureau of Statistics.
