Reuters reported that China new installed power generation capacity this year will be the least since 2006, straining electricity supplies with power consumption expected to grow by about 9%.

Citing the China Electric Council, a lobby group of the country top power providers including Huaneng Power International Inc and Datang International Power Generation Co Ltd, the report said China would bring 10 GW less new capacity online this year than in 2011.

It said consumption in the world No 2 power market was likely to hit 5,130 billion kilowatt hours this year. That compares with 4,692.8 billion kwh consumed last year up by 11.7% over 2010 as reported by the National Energy Administration on Sunday.

The reported quoted an industry executive as saying that "We're expecting tight power supplies in some regions this year as the investment abilities of power companies decreases and other factors such as tight coal supply and the prospect of low rainfall limiting hydropower output."

Prices for coal which fuels about three quarters of China total power capacity would stay at high levels because of transportation constraints and industry consolidation.

(Sourced from Reuters)