Coop enhanced for electricity supply
Following the implementation of the program to revitalize the traditional industrial base in Heilongjiang, power consumption in the province is expected to rise. One solution for likely shortfalls is enhancing cooperation with Russia in this field.
It is predicted that in 2010, Heilongjiang's electricity consumption will hit 74 billion kilowatt-hours. However, its installed power generation capacity will be only 16.86 million kilowatts. Apart from catering to the needs of local enterprises and residents, the province is required to transmit about 4 million kilowatts to the regions in the south. To solve the problem, some companies in Heilongjiang are already taking advantage of Heilongjiang's strategic geographical location to buy electricity from Russia.
The Russian Pavilion at the 17th Harbin Trade Fair |
According to Heilongjiang officials, the electricity production capacity is insufficient to keep up with the province's increasing energy consumption, leaving Heilongjiang faced with an electricity crisis.
The solution to the crisis lies in Russia's electricity sector, which forms a large part of its revenue. Moreover, Russia is keen on exporting electricity to China.
Russia's electrical power system is the biggest in Europe and fourth largest in the world, producing about 1 trillion kilowatt-hours annually. Many of Russia's big power stations are concentrated in Russia's Far Eastern and Siberian regions near Heilongjiang Province.
Electricity cooperation with China will inject new life into the development of Russia's electricity sector, which has been facing a lack of funds, and using obsolete technology and experiencing low productivity.
Heilongjiang also stands to benefit from the cooperation. Besides securing an energy source, such collaboration will help the province develop its electricity industry.
However, officials noted that despite the increase in electricity trade between Heilongjiang and Russia, the channels for importing Russian electricity are limited and the dealers few.
Last November saw the completion and operation of a project transmitting Russian electricity to Heihe, guaranteeing electricity for the emerging processing industries. Transnational transmission of electricity between China and Russia is currently a major area of economic cooperation. However, Heihe is the only point for electricity transmission between Heilongjiang and Russia and the business is mainly handled by two companies.
To meet Heilongjiang's energy needs, officials suggested an increase in electricity trade between China and Russia. To achieve this, power supply networks need to be incorporated into the province's overall social and economic development planning.
Also, the injection of funds will expand the electricity trade, attract investors to the business and spur the economy.
Last March, China inked a deal with a Russian company, establishing goals and standards for long-term electricity cooperation between the two countries.
(China Daily 06/08/2007 page20)
