SHANGHAI (AFX-ASIA) – Shanghai plans to double its power generating capacity by 2010, even as this summer threatens to bring even worse power shortages than last year’s, the Shanghai Daily reported.
The report quoted government spokeswoman Jiao Yang as saying that over 100 billion yuan will be spent on, among other improvements to the city’s power grid, 8 million kilowatts of extra generating capacity over the next six years. (US$1=8.27 yuan).
Businesses and residents are bracing for another difficult summer, as soaring temperatures strain the city’s power system.
The report noted that a dozen foreign-invested companies approached the city government last week that they may lose investment in Shanghai because of the power shortage.
This summer’s shortfall is set to hit 4 mln kw, the report said. While no power cut offs will be enforced this year, Jiao was quoted as saying that rationing will still be used.
Power prices during the day will be 4.5 times more expensive than those at night, the report said, up from 3.6 times currently.