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 stressing in summer at the peak time. It is not unusual for a manufacturing facility to operate but four days a week. In the province of Zhejiang, which was hardest hit, blackouts averaged 11.32 days a month in the first half of 2004. Escalators in commercial centers were put to stop. Half the streetlights were off. And in some areas, even traffic lights were turned off on temporary basis.

...The issue is urgent and with far-reaching significance. "Energy has become an important factor that holds back economic and social development," states a news release from the first LGED meeting convened June 2.

Statistics show by the end of 2004 China's total power capacity reached 440,000 MW. Experts say that should be raised to approximately one million MW by 2020, which means an annual addition of 33,000 MW. The prospects cause concerns over diminishing energy reserves and the environmental impact.

China View