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Hu Zhaoguang: Why is there power shortage

   This year's power shortage is mainly institutional and regional power shortage: the rapid rise in coal prices led to thermal power plants contribute to inadequate power transmission capacity shortage makes cross-transfers between regions difficult.

    As the rapid growth of heavy industry, electricity earlier this year, 20 provincial power grids nationwide power shortage, power shortage of up to 30 million kilowatts, presented "in the early, wide range of" feature. Same period, the Northeast and Northwest have surplus capacity of electricity supply grid. In the summer, China's power gap is still 25 to 30 million kilowatts, accounting for about 3% of the maximum load,booster cable mainly concentrated in eastern, central, north and south.

    This summer, "power shortage" phenomenon does not increase, the main issue is the beginning of a "warning." Government to take timely measures to address the problem of coal prices grow too fast, adjust the price in some areas. Meanwhile,power cord the government and the power company's plans to develop a response to lack of electricity, such as demand-side management, electricity and other measures ordered. In addition, the country does not appear this summer, a wide range of temperatures and dry weather, but also eased the problem of insufficient power supply in summer.

    Throughout China's long-term economic development, in most years there is power shortage. Since 2000, China's rapid growth in electricity demand,trouble light while "15" are seriously lagging behind the initial power construction. The first is lack of power installed capacity, followed by power shortage. Delayed construction of the power lead from 2003 to 2005 the country appeared in large-scale, long power supply and demand tensions, the power deficit of 35 million kilowatts, accounting for about 10% of the maximum load.

    After 2006, the national annual increase of installed capacity are 90 million kilowatts, the total power generation capacity to meet basic electricity needs. However, due to the power grid construction for many years lagged behind the building, especially in cross-grid construction lag, the price mechanism with coal flow, electricity supply, climate and other factors of uncertainty, caused by recurring power shortage.

    This year's power shortage is mainly institutional and regional power shortage: the rapid rise in coal prices led to thermal power plants contribute to lack of power makes the cross-regional transmission capacity is insufficient swap difficult.

    In this regard, the proposed departments:

    First, the price is supply and demand signals, but also a means to adjust economic structure. Should be based on market rules, to speed up coal prices to rationalize the relationship to the effective use of market mechanisms generating capacity of thermal power plants.

    Second, China's vast land, the regional imbalance will persist, through increased cross-transmission, can ease the power shortage.

    Third, strengthen the power supply and demand early warning, preventive measures. Through early warning, early development of plans to reduce the power shortage on the economy and the adverse effects of life.

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