With the announcement of a proposed west-east gas pipeline project, China's "go
west" initiative is now turning its attention to the east-west transmission of
electricity.
At a special symposium held last week, State Development Planning Commission
Vice-Minister Zhang Guobao said a west-to-east electricity transmission strategy is an
inevitable choice and a win-win strategy for both the western and eastern regions.
Zhang said a detailed strategy is under consideration and will be listed in the
proposed Tenth Five-Year Plan (2001-05).
According to Zhang, the central government will promote the development of abundant
hydropower resources in West China.
The western region's exploitable hydropower potential is estimated to be about 255.07
million kilowatts, 70 per cent of China's total, of which Southwest China possesses 219.43
million kilowatts, and Northwest China has 35.64 million kilowatts.
China's total exploitable hydropower potential is estimated to be 378 million
kilowatts, ranking it the largest in the world. To date, only 15 per cent of China's
hydropower resources have been exploited, compared with 50 per cent to 90 per cent in
developed countries.
More than 70 per cent of China's electricity is produced using coal-fuelled power
plants, which has resulted in serious air pollution, especially in coastal or industrial
cities.
However, comparatively long construction lead times and high initial investments are
major obstacles for hydropower project planners to overcome.
Pan Jiazheng, vice-president of the Chinese Academy of Engineering, said the State
should provide preferential loans and tax reductions to promote the construction of
hydropower projects.
In Northwest China, especially in coal-rich areas such as Inner Mongolia and Shaanxi,
more pit-head power plants are expected to be built near coal mines. Electricity generated
in this way will be transmitted to the eastern areas.
China has created a primary framework for the electricity-transmission programme,
including three major transmission lines, from Shanxi Province and the Inner Mongolia
Autonomous Region to Beijing and Tianjin and Hebei Province; from Guizhou and Yunnan
provinces to the city of Guangdong; and from the Gezhouba Power Station in Hubei Province
to Shanghai.
Since oversupply still prevails in the current electricity market, it is urgent to
accelerate reforms to separate the operation of the grids from the power plants to pave
the way for more fair market competition and to make room for relatively inexpensive
electricity from the west.
