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Shanxi to auction off coal mines
By Wang Ying (China Daily)
Updated: 2006-04-18 08:42 Wu Chenghou, executive director of China Coal Sales and Transportation
Association, earlier said coal production this year is expected to be 2.26
billion tons, while demand could be 2.25 billion tons.
China, the world's
second-largest energy consumer after the United States, depends on coal for
about 70 per cent of its energy needs.
The fuel will continue to be the
country's primary energy source for the coming decades, industry analysts have
said.
Meanwhile, the Chinese Government has invited bids to build three
wind farms, which have a total capacity of 700 MW (megawatts), the nation's top
economic planning body said.
The cost of building these farms could reach
7 billion yuan (US$863 million), an industry analyst predicted, saying costs
could be up to 10,000 yuan (US$1,233) per kilowatt.
A wind power plant of
300 MW will be built in the Inner Mongolia Autonomous Region in North
China.
Another farm with a capacity of 200 MW will be based
elsewhere in the autonomous region, the last will be in Hebei Province, the
National Development and Reform Commission (NDRC) said yesterday said on its
website.
This is the fourth round of competitive bidding that the NDRC
has conducted for wind farm construction in China since 2003.
By the end
of last year, China had built wind farms with a total capacity of 1,260
MW.
That figure is scheduled to increase to 30,000 MW by the year 2020,
the NDRC has said.
National wind power facility manufacturers are being
told to participate in this bidding process.
Shi Pengfei, vice-president
of the Chinese Wind Energy Association, said yesterday this would help increase
domestic companies' involvement in wind farms.
The government says that
at least 70 per cent of generation facilities must be manufactured
domestically.
And price will not be the only determining
factor.
"Prices now count for only 30 per cent towards whether a firm
wins a bid, compared with the previous 40 per cent," Shi yesterday told China
Daily.
The remaining 70 per cent will be decided by the quality of
equipment, and a company's operation and management, he added.
(For more biz stories, please visit Industry Updates) |
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