China's independent power producers have been hit by higher than
anticipated environmental protection costs.
An environmental protection
policy, which took effect on July 1, requires power producers to pay pollution discharge fees
on pollutants such as sulfur and nitrogen oxide above a certain threshold.
The policy is part of government efforts to curb the impact of coal on the
environment as the fuel, a key factor behind acid rain, accounted for 66 percent of the
country's energy source in the first six months of this year.