Xinhua news agency reported that China Shenhua Group will build the largest coal fired power station in Asia over the next five years, as the country struggles to meet its energy needs.

China biggest coal company and officials in the Guangxi Zhuang Autonomous Region signed a deal for the 8-gigawatt thermal plant on December 26. The plant would be built in the southern port city of Beihai to help ease power shortages caused by drought which has strained power supplies.

China relies on coal for nearly 70% of its energy needs which have soared in recent years as the country economy grew at a blistering pace. Power outages and rationing have been imposed in 17 provinces this year and shortages could worsen if coal supplies are not increased or if the country North sees particularly harsh winter weather.

Shenhua plans come days after local governments were ordered to reduce emissions of major pollutants by as much as 10% by 2015 amid growing public anxiety over bad air.

China is the world biggest greenhouse gas emitter with many of its cities cloaked in a polluted haze.

(Sourced from Xinhua)