China's power supply should meet demands by 2006, said Zhao Xizheng, president of the State Grid Corporation of China, Monday.

"With the implementation of the macro-control measures taken by the Chinese government and the power supply capacity further increased, the intense situation of power shortage will probably begin to be relieved by 2005. The basic balance between supply and demand of power is expected to be reached," said Zhao at the World Industrial and Commercial Organizations Summit held in Beijing.

The power industry is an important part of national economy. Accelerating the development of power industry and solving the gap between supply and demand of power as early as possible will provide a broad market space for China and the world, Zhao noted.

The country's installed generating capacity reached 100 million kw in 1987. It exceeded 200 million kw in 1995 and 300 million kw in 2000. This June, it reached 400 million kw. China's installed generating capacity and electricity generated has ranked second in the world since 1996, according to figures by the corporation.

Officials estimate that the power consumption will reach 3,092 billion kilowatt-hours by 2010. Installed generating capacity is required to reach about 680 million kw. By 2020, the power consumption should reach 4,600 billion kilowatt-hours and the corresponding generating capacity will reach 1 billion kw, according to Zhao.

Large-scale power shortage in China began in the middle of 1960s. In 1997, the balance of supply and demand was realized for the first time. However, the supply and demand of power has been intense since 2000. In 2002, 12 provincial grids had to cut the switch and restrict power supply in summer and dry season of winter, and in 2003 the figure increased to 23.

In the first half of this year, 24 provincial grids cut the switch and restricted power supply.