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Enviro policies boost China hydro power

Hydroelectricity power in China is set to grow at double digit rates over the next five years

The Three Gorges Project generated 78.29bn kWh of electricity in 2011‎
The Three Gorges Project generated 78.29bn kWh of electricity in 2011‎

During the next five years, China will initiate a 160 million kW project for the hydroelectricity power industry to increase the ability of using alternative energy and to reduce the greenhouse gas emissions. Total revenue for the hydroelectricity power industry in China is therefore forecast to increase at an annualized rate of 11.3 per cent in the next five years to total USD 47.46bn in 2016, according to IBISWorld, America’s largest publisher of industry research.

Revenue of the hydroelectricity power industry in China for 2011 is estimated to be USD 27.74bn, having decreased by 1.8 per cent from 2010. Due to the lack of precipitation over many river basins, water resources in these rivers were reduced by more than 15 per cent. This directly influenced the output in this industry. In 2011, the industry was estimated to only generate 655.5bn kWh of electricity, down 1 per cent from 2010.

The government's strategy for developing renewable energy in China has had a positive impact on this industry in recent years, in terms of development and efficiencies. Additional drivers for industry growth include power shortages, industry deregulation and the implementation of a market mechanism.

The hydroelectricity power industry in China comprises establishments that operate hydroelectric power generation facilities. These facilities derive electric power from water, such as rivers, streams and the overflow of dams. The establishments in this industry produce electric energy and provide electricity to transmission systems or to electric power distribution systems.