An oversupply in China's powermarket may well continue in 2009, according to a report released by China Economic Herald on Saturday.
Power supply and demand will run at basically balance in east and south of China, while it will emerge glut in north, northeast, northwest and central of China, according to the report.
Earlier report said China will enhance the effort to optimize the power system and will inject 300 billion yuan in power construction in 2009, and 350 yuan into the grid construction.
By the end of 2009, the total installed capacity may reach 860 million kilowatts after it eliminated the backward capacity of 13 million kilowatts but newly added 80 million kilowatts.
The protracted negotiations between coal producers and power plants gave the power market a negative outlook. Power supply and demand may be affected, experts pointed out.
It is projected that the total demand of the coal for power generation and heating supply will stand at 1.55-1.6 billion tonnes this year.
On the whole, China's power market may still suffer the decrease in the first half of 2009, while situation will turn to better by the end of second quarter. From the third quarter, power demand is seen to raise, especially in the regions like north, east of China and the costal provinces. And the power consumption growth in these above mentioned areas will also drive up the area in west and central China.
The growth of the nation’s power consumption is predicted at 4-5 percent for the whole year.
By the end of 2008, the total installed capacity of China was 792.5 million kilowatts, up 10.34 percent year on year. And the output jumped 5.18 percent to 3,433 billion KwH, while the consumption of that year was 3,426 billion KwH, growing 5.23 percent year on year.
