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Beijing will not impose compulsory brownouts or power-downs for factories this summer despite a predicted energy shortage, a senior city official said yesterday.

"Peak power consumption is expected to top 12.2 million kilowatts, or 14.6 per cent higher than last year," said Zhang Gong, vice-director of the Beijing Development and Reform Commission.

Speaking at a press conference Zhang said the electricity shortage during peak periods this summer could reach 5 million kilowatts, or even 7.3 million kilowatts in some parts of the capital.

Limited power generation, slow grid construction, a rapid increase in consumption, skyrocketing prices for coal and hydro-electric power and uncertain weather will create a sharp contradiction between demand and supply, Zhang warned.

To deal with the shortage, Beijing's local government will shift from administrative control measures to a long-term technology-oriented plan, said the official.

"Beijing's grid is a typical power recipient, which means two-thirds of its electricity comes from other provinces," said Chen Tiecheng, a commission official in charge of power and coal management.

Li Tongzhi, vice-general manager of the Beijing Electric Power Company, told reporters that the city has invested 1.53 billion yuan (US$189 million) in upgrading the capital's grid so far this year.

Beijing also use pricing leverage to try to level consumption, said Zhang, adding that factories would be encouraged operate outside peak power-usage hours.

At peak hours, power costs 1.1 yuan (US$0.14) per kilowatt-hour, versus a lowest off-peak price of 0.26 yuan (US$0.03).

"Such measures have greatly reduced the power consumption load in the city over the past two years," said Zhang, adding that a compensation system would be adopted for firms which voluntary adjust their consumption.

Other measures will include differential seasonal power prices, raising the temperature of air conditioners, and installing ice air conditioners which stockpile ice during non-peak hours.

Schools, hospitals and government and military units will adopt differential seasonal power prices next year to conserve electricity, said the official.

"Air conditioners in government offices should be kept at 26 C at the minimum," said Chen.

"Through this, hundreds of thousands of kilowatts-hours of the peak hour power consumption load can be saved."

The municipal government will map out compulsory standards that request every new building whose refrigeration area surpasses 30,000 square metres to install ice air conditioners, added Zhang.

At present there are 51 ice air conditioners in Beijing. There are expected to be 78 by the end of the year, saving 50,000 kilowatts-hours of power consumption during peak times.

(China Daily May 31, 2006)