As learned from the Ministry of Water Resources China has stepped up its efforts on the water and soil conservation in power projects as the country accelerates the development of its power sector.

The Ministry has assessed and approved 120 power projects so far. Undertakings involved have performed their responsibilities defined in approved schemes for more than 200 million hectares of water and soil conservation and plan to invest 6 billion yuan plus for projects which are designed to save more than 60 million tons of water and soil.

Undertakings for power projects are required to prepare and submit programs to prevent water and soil from draining away, which are supposed to define the responsibilities, set goals, states clearly the measures and map out designs.

When a project is launched, undertakings must make sure that water and soil conservation items keep pace with the principal part of the whole project. Detailed requirements for site management concerning control over water and soil losses are also in place.

China ranks the second in the world in power generation following the US. More than 70 percent of the power is fueled by coal. But China is not rich in coal supply. The government has put hydropower on the top of its agenda of energy strategy.

China has been struggling amid power shortage since last year. The situation is particularly serious in eastern coastal areas where the more developed local economies need more electricity.

That gives investors enough incentives for their venture in the power sector. Private capital is swarming into the market of small hydropower stations along China��s rivers. Foreign investors are also eyeing the potential of the market. ABB, Alstom and Siemens are all suppliers of facilities for the Three Georges Project on the Yangtze River. Foreign capital has showed deep interest in building hydropower stations although their enthusiasm was dampened in recent years because of the market changes brought about by the reform of the sector.

Recently the first wholly foreign-funded medium-sized hydropower station - Qinghai Zhiganglaka on the upstream of the Yellow River dammed the river in Qinghai. With an investment of 1.42 billion yuan, it is jointly developed by the US AES Group and Hong Kong Zhenxing Group.

China also has exploited wind, thermal and solar energy which also has attracted foreign investment. A wind farm in Hainan has been built with German loans. China's first wind/PV power hybrid system was successfully combined to the grid recently at Huaneng Nan'ao Wind Power Park and put to commercial operation. And the country��s nuclear energy is playing an increasingly important role in its energy mix.

But some people are concerned about the influence of the hydropower projects on the environment and life of local residents who face relocation.

The government is considering measures to curb the possible over-investment in power plants. Fire-fueled power plant with capacity of 135,000 kw or below will not be given a nod at the State Environmental Protection Administration.

By People's Daily Online