China has bought power equipment in the first seven months of this year that will add 30GW of new capacity to the national grid, according to a survey of orders reported by the Financial Times. This is equal to nearly 10 per cent of existing national capacity and is 50 per cent more than the total purchases made for the whole of last year. The report covers only thermal plants and excludes the hydroelectric and nuclear sectors.
Increasing demand for power is driving the purchase of more equipment. Demand is strongest in the industrial sector, particularly aluminium smelting.
Guangfa Securities has predicted that Chinese manufacturers will secure Yn30bn- 40bn of orders this year, although this will still leave opportunities for foreign suppliers. For example, GE Power Systems has signed a US$900m contract for 13 new gas turbines that will provide about 5GW of new power.