Energy

China may spend $1.7t on power infrastructure

(Agencies)
Updated: 2010-12-22 15:41

China may spend 11.1 trillion yuan ($1.7 trillion) in the next 10 years building electricity infrastructure, Bloomberg reported Wednesday, citing a 21st Century Business Herald report.

China may boost investment in power grids and electricity stations to 5.3 trillion yuan from 2011 to 2015, up 68 percent from spending in 2006 to 2010, the newspaper said, citing Wei Shaofeng, deputy director at the council. Investment may rise to 5.8 trillion yuan from 2016 to 2020, the report said.

Related readings:  China's State Grid buys $1b Brazil power assets  Swan's flap shows power of love  Plug pulled on power company's housing project  Power shortage likely to remain over the winter

Power generation capacity may rise 8.5 percent annually to 1.4 million megawatts (mW)?by 2015 and to 1.9 million mW by 2020, according to the report. Power generation by non-fossil fuels will account for 33 percent of the total by 2015 and 36.3 percent by 2020, it said.

The government may need to raise electricity prices by an average 3.5 percent annually over the next 10 years to ensure power producers get an?eight percent annual return on net assets, the report said.