China intensifies clean power projects due to coal shortages

China's twelth five-year plan unveiled this week plans for 70 GW for wind, and 5 GW of solar by 2015.

The Chinese government continues to expand its clean energy production plans, to replace increasingly expensive coal power that is shutting down coal plants and causing power shortages of at least 16 GW.

Coal prices have risen 75% since 2007, while electricity prices have only been allowed to rise 15%. Shortages of Chinese coal as local mines are depleted are driving up prices for imports and China's coal power plants are now under real financial stress.

As a result, as much as 30 GW of power shortages are forcast as struggling coal power plants in China are unable to stay in business. China intends to build at least 75 GW of new clean energy to help supply new energy demands as its economy grows. But the dramatic loss of coal power was not factored in several years ago.

China is using competitive bidding to drive down the costs of the new renewable energy generation.

China's first CSP tender generated an average solar power price of CNY0.96 or US$15 per kWh. The price being offered for CSP solar is about double the price of its conventional coal power. Wind is also more expensive, but now increasingly competitive.

The full story is available at Reuters.