China's electrical power supply and demand will reach balance in 2006 and it will see an oversupply of electricity in 2007, a newly issued economic blue book predicts.

This is a result of the central government's macro-regulation and control policies, says the blue book, which was released at the 7th Chinese Economists Forum held recently in Beijing.

The forum was jointly held by the Development Research Center of the State Council, the Chinese Academy of Social Sciences and the Ministry of Commerce.

Statistics from the China Coal Industrial Association show that China's coal output will exceed 2.1 billion tons this year, growing 8 percent year-on-year, and coal-fired power will demand 1.12 billion tons of coal this year, an increase of 120 million tons over last year.

"According to this calculation, the supply shortage of coal, especially those for power use, is expected to be eased in 2006," the blue book says.

China has witnessed shortages of power supply over recent years, due to the over-rapid growth of fixed assets investment.

Source: Xinhua