China's energy watchdog, the National Energy Administration, signed agreements with 26 provincial governments Friday to close at least 10 million kilowatts of outdated coal-fuelled power capacity before October this year.

The agreement means China will close 70 million kilowatts of small-scale, outdated thermal power station capacity in the Eleventh Five-Year Plan period from 2006 to 2010.

If achieved on time, the plan will save 81 million tonnes of coal annually, or 2.6 percent of the coal used in 2005; eliminate 1.4 million tonnes of sulfur dioxide emissions, or 5.5 percent of 2005 levels; and cut carbon dioxide emissions by 164 million tonnes, about 3.2 percent of 2005 levels.

Some 4.11 million kilowatts of outdated thermal power station capacity has been eliminated so far this year, according to the administration.

The 26 provinces, regions and municipalities include Jiangsu, Shandong, Guangdong, Henan, Hebei, Jilin, Sichuan, Fujian, Heilongjiang and Shaanxi.

The agreements was struck at a national work conference in Beijing discussing the elimination of backward production capacity.