An industry group has predicted China will continue to face electricity shortage in 2005, estimated at 20 million to 25 million kwh, despite rapid growth of electricity generating capacity.

"The tension will be eased a lot compared with the situation in 2004," said Wang Yonggan, secretary-general of the China Electricity Council (CEC), an association of Chinese electricity businesses.

According to Wang, the installed electricity generating capacity is supposed to rise 70 million kw, or 15.88 percent, to 510.7 million kw in 2005. On the other hand, the demand is expected to rise 13 percent.

Wang said not all the installed generating units would operate at full capacity due to tight supply of coal, oil, water and the influence of bad weather and natural calamities.

An analysis report of the CEC indicates the electricity shortage will be most severely felt in the economically developed east China this year, with the gap estimated at around 11 million kwh. The extent will be much lesser in north China, central China, south China, northeast China and northwest China.

CEC statistics show China's electricity consumption reached 2.17 trillion kwh in 2004, up 14.9 percent over the previous year.

(Xinhua News Agency February 27, 2005)