Because of the soaring coal prices, China's leading power producers have all begun to eye clean energy. China Huaneng Group is now developing wind power plants in provinces such as Hainan, Guangdong, Jilin and Shandong, and the Inner Mongolia autonomous region. Huaneng is also quickening its development of hydropower and nuclear power.

The government raised the electricity tariff by 0.025 yuan per kWh from July 1. However, some analysts said the rise could not offset power companies' losses.

Some analysts said the price increase, however, could only cover 15 percent of the losses in coal-fired plants.

China's major power plants produced 1.68 trillion kWh of electricity in the first half of this year, a year-on-year increase of 12.9 percent, said the China Electricity Council.

This summer the country will see 16 gW of power shortages, according to the State Electricity Regulatory Commission.

(China Daily July 25, 2008)