Project Cases

 　　Power infrastructure development exerts a significant stimulative effect on the socio-economic sphere, yet China’s rapid economic growth has resulted in relatively tight electricity supply. To meet the needs of national economic and social development, the state must accelerate the pace of power infrastructure construction. Historically, there has been a positive correlation between industrial value added and power infrastructure development: as power infrastructure expands—particularly with the increase in industrial electricity consumption—industrial value added tends to rise accordingly. Electricity consumption is often regarded as a “thermometer” of economic development, with the two generally moving in tandem. The ratio of the electricity consumption growth rate to the economic growth rate constitutes the elasticity coefficient of electricity consumption, and its fluctuations reflect the combined influence of factors such as economic growth and structural changes over a given period. Investment in industrial power infrastructure has emerged as a prominent determinant of changes in industrial value added.

　　China’s power system is currently in relatively good overall condition. With economic growth, electricity demand continues to rise; however, regional disparities persist. The power-generation mix also faces certain challenges. To adjust this mix, efforts should be focused on the following three areas:

　　First, every type of power source, particularly thermal power, requires technological advancement and adjustment.

　　Second, the proportion of hydropower, thermal power, and other forms of power generation should be adjusted appropriately;

　　Third, the power supply layout also needs to be adjusted. China has substantial coal reserves, but their distribution is highly uneven: regions with high electricity demand, such as East China, are virtually devoid of coal, while most of the coal is concentrated in Northwest China and northern North China. Meanwhile, most of the suitable sites for hydropower development are located in the western regions. Although hydropower resources are abundant, their distribution is likewise suboptimal. Therefore, grid infrastructure development should be leveraged to realign the spatial distribution of power resources, thereby optimizing their utilization. Given China’s vast territory and relatively rich endowment of various renewable energy sources, it is essential to make full use of these renewables to achieve green electricity generation.