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China to face temporary energy glut

By Si Tingting and Wan Zhihong (chinadaily.com.cn)
Updated: 2008-12-12 11:11

China will face temporary energy glut because of dwindling demand in the global financial crisis, Wang Siqiang, an official with the National Energy Administration told a forum today.

China's power generation in October fell 4.6 percent from a year earlier, the first year-on-year decline since 2005. Wang said energy output is set to fall further in November.

In some provinces and autonomous regions, such as Ningxia and Guizhou, power generation has decreased by over 30 percent, said Wang.

He added that too many coal-fired power plants are in the process of being built, which will contribute further to the overcapacity situation, he said.

Analysts said China's power capacity will exceed 800 gigawatts in 2009, up from a little over 700 gigawatts.