Demand for electricity in China has risen rapidly, driven
by massive economic growth. Generation capacity does not
meet demand, and would need to be increased substantially
in coming years. China has the second largest electricity
industry in the world and is playing an important role
within the global economy and environment. Increasing
energy demand is projected in China over the next two
decades, driven by its highly energy intensive economy and
strong GDP growth. The primary fuel mix is dominated by
coal, which is contributing to significant local, regional and
global environmental pollution.
One of the key challenges facing China is how to achieve
its energy development demands within both its energy
supply source structure, and its current dual system policy
of state and private ownership of the industry without
further exacerbating environmental problems but prioritising
affordable and effective power supply to its population