The No. 26 turbine generator, made by Harbin Electric Machinery Company Ltd, began producing its first kilowatt of electricity at around 11 a.m. after passing a 72-hour trial period. The electricity will be transmitted to the state power grid to fuel the energy-strained areas of eastern China.

A member of construction staff cleans up the surface of the No. 26 generator at the Three Gorges Dam, June 4 2007.[Xinhua]

"Successful operation of the No. 26 generator shows that China is able to design, manufacture, install and operate, on its own, 700,000 kilowatt water turbine generators," proclaimed Yang Qing, deputy general manager of the China Yangtze Three Gorges Project Corporation (CTGPC).

Another seven turbines made by the Harbin-based company and Dongfang Electrical Machinery Co Ltd, along with four imported turbines, will go into operation on the right bank of the Yangtze River at the end of 2008.

The National Audit Office (NAO) has said that the use of eight China-made generators will save 356 million yuan (about 47.46 million U.S. dollars) compared with purchasing those made by foreign companies.

The operation of the No. 26 turbine generator is the latest example of the Chinese government's strategy of localizing advanced technologies imported from overseas companies, Yang said.

In 1996, the CTGPC invited overseas manufacturers to bid for contracts worth 16.35 million U.S. dollars to supply 14 turbine generators on the left bank of the Three Gorges dam.

The contracts were won by a consortium of GEC Alsthom and the Swedish-Swiss ABB and another consortium consisting of Voith Hydro GmbH, GE Hydro and GE International Inc, and Siemens AG (VGS).

China's Harbin Electrical Machine Factory Co Ltd and Dongfang Electrical Machinery Co Ltd joined the two consortiums as subcontractors for the 14 units.

"Working with the foreign companies facilitated the transfer and assimilation of advanced technology," said Liang Weiyan, an academician with the Chinese Academy of Engineering.

The 180-billion-yuan Three Gorges project, which was launched in 1993, will have 32 generators with a combined generating capacity of 22.4 million kilowatts.

The electricity generated by the project has fueled 15 provinces in central, eastern and southern China, easing a severe power shortage in their industrial regions, according to the China Three Gorges Project Corporation.