Grids and power companies sign Three Gorges deal

Shanghai, China -- - At a recent signing ceremony, China's National Development and Reform Commission (NDRC) revealed the distribution plan for the electricity produced by the Three Gorges from 2004-2006. Meanwhile, with supply strains throughout the country caused by a particularly hot Summer, the power already being provided by the world's biggest hydropower project will be welcome, but certainly not sufficient, even as the third of the 26 Three Gorges generator units goes into trial operation.

At the ceremony, which took place in front of a China Central Television camera crew as well as the representatives of many domestic media, it was revealed that next year, the East China Power Grid would receive 11.64 bln kWh, rising to 16.18 bln kWh in 2005, and 21.28 bln kWh in 2006. Meanwhile, Central China is assigned 2.55 bln kWh this year, 6.43 bln kWh next year, 8.47 bln kWh in 2005, and 9.59 bln kWh in 2006. Guangdong Province, where the shortages of electricity are particularly pronounced, is set to receive 78.4 bln kWh next year, 12.43 kWh in 2005, and 14.09 bln kWh in 2006. Like Anhui and Jiangxi, Guangdong Province will receive nothing from the Three Gorges this year.

By 2009, it was revealed, the generators at the Three Gorges will be producing 100 bln kWh a year, the equivalent, it was noted, of 35 mln tons of standard coal. Expert claims that the commercial operation of the project would help boost the competition in China's power market, and eventually reduce the overall power price.

At present, the on-grid price per kWh of Three Gorges electricity stands at RMB 0.25 (USD 0.03), according to an article on the official website of the Yangtze Water Resources Commission. A contract was signed on Sunday between National Power Grid Company, State Power East Company, the State Power Central Company, as well as the power companies from all the recipients of this year's Three Gorges electricity, Shanghai, Jiangsu, Zhejiang, Henen, Hubei, Hunan and Chongqing, marking the formal beginning of the sale of power produced by the first batch of generators.

According to a document released by the NDRC, the Three Gorges Hydropower Station will deliver a total of 2.81 bln kWh to the East China Grid this year, and another 2.55 bln kWh to the Central China Grid. Chongqing, another region struggling with severe power shortages, will receive 770 mln kWh, while Shanghai - plagued by power cuts - is set to receive 1.2 bln kWh.

On August 16, the third 700,000 kW generating unit on the left bank of the Three Gorges Dam entered into a three day trial operation, China Central Television also reported. The trial came 45 days ahead of the original schedule. At the current water level, the unit will not be capable of running at full load, as Lu Youmei explained at a press conference attended by Interfax last month. The expected capacity at present is 550,000 kW per unit.

Lu Youmei also noted that the forth unit to go into operation this year is set to start generating power in October, bringing the total capacity for all four units to 2.2 mln kW.