Electricity glut coming, economists warn

China, now suffering from power shortages over two thirds of the country, could be in for a massive electricity glut in three to five years, a Standard Bank economist told Reuters. Other analysts agreed, HSBC economist Qu Hongbin telling the news agency that the current growth in demand was not sustainable. China's power demand growth has reached its highest level in 20 years, climbing 15.8% in 2004's first half over the same period a year earlier. Now power companies must defend their own growth trajectories. Huaneng Power International just announced plans to raise generating capacity by another two thirds, Chief Executive Li Xiaopeng explaining that the company had to ensure its healthy and sustainable growth.