China will continue to shut down small coal-fired power stations in 2008, targeting a total capacity of 13 million kilowatts, as part of efforts to save energy and reduce greenhouse gas emissions.

The figure is about 30 percent more than the target of 10 million kilowatts set for last year, the National Development and Reform Commission (NDRC), the country's economic planning agency, said in January 29, 2008.

China managed to close 553 small thermal power generators in 2007, with a total capacity of 14.38 million kw, or 44 percent above the goal.

The State Council, China's cabinet, set the goal of shutting down 50 million kw of thermal power capacity between 2006 and 2010.

Zhang Xiaoqiang, NDRC vice minister, said the current power shortages in some regions were "absolutely not related with the closure of small coal-fired power stations".

The vice minister said highly-efficient and eco-friendly power generators, with a capacity totaling 100 million kw, had recouped the losses in capacity due to the closure in 2007.

He said the shortfall was caused by increased demand and coal shortage, both as a result of the extreme weather.

Coal shortage has knocked off an aggregate capacity of 40.99 million kw off the power grid, or seven percent of the total capacity of thermal power plants.

Large thermal power generators, each with a capacity exceeding 50,000 kw, would replace small coal-fire power generators to help save 18.8 million tons of coal and avoid emitting 290 thousand tons of sulphur dioxide and 37.6 million tons of carbon dioxide annually, according to the commission.

The move showed the country's commitment to sustainable development and its latest efforts to face the challenge of climate change as a responsible country, the vice minister said.

The State Electricity Regulatory Commission (SERC) said on Monday that coal reserves stood at a little more than 21 million tons, less than half of normal reserves. Nearly 90 power plants, which accounted for over a 10th of the national gross installed capacity, had less than three days of coal reserves.

In addition, the bad weather and rising passenger rail traffic before the Spring Festival, the most important Chinese holiday, have hampered coal transport.

Only an average of less than 25 percent of the daily demand for coal shipment by rail has been met, according to the Ministry of Railways.

Source: Xinhua