China Investing $85B In Power Industry

Beijing’s power companies step up investments in nuclear and wind power to meet growing demand and boost economic growth as part of a multibillion-dollar stimulus plan.

BEIJING (AP) -- China will invest 580 billion yuan ($85 billion) to expand its energy industry in 2009 and will add more nuclear and wind-powered generating capacity, state media said Wednesday.

China's state-owned power companies are stepping up investments to meet growing demand and help boost economic growth as part of a multibillion-dollar government stimulus plan.

Plans call for investment in wind, nuclear and solar power, as well as expanding coal-fired generation, state television reported, citing Zhang Guobao, director of China's energy agency. They said Zhang made the announcement at a government meeting Wednesday.

Chinese power companies stepped up investment in November as part of the government's 4 trillion yuan ($586 billion) stimulus plan. A large share of spending for the package is due to come from state-owned companies.

China will build eight more nuclear plants with a total of 16 reactors over the next three years, the China Daily newspaper said.

The country has 11 nuclear reactors supplying about 1 percent of its power, and Beijing wants to raise that share to 5 percent, the newspaper said.

More in Energy