With the announcement of a proposed west-east gas pipeline project, China's "go west" initiative is now turning its attention to the east-west transmission of electricity.

At a special symposium held last week, State Development Planning Commission Vice-Minister Zhang Guobao said a west-to-east electricity transmission strategy is an inevitable choice and a win-win strategy for both the western and eastern regions.

Zhang said a detailed strategy is under consideration and will be listed in the proposed Tenth Five-Year Plan (2001-05).

According to Zhang, the central government will promote the development of abundant hydropower resources in West China.

The western region's exploitable hydropower potential is estimated to be about 255.07 million kilowatts, 70 per cent of China's total, of which Southwest China possesses 219.43 million kilowatts, and Northwest China has 35.64 million kilowatts.

China's total exploitable hydropower potential is estimated to be 378 million kilowatts, ranking it the largest in the world. To date, only 15 per cent of China's hydropower resources have been exploited, compared with 50 per cent to 90 per cent in developed countries.

More than 70 per cent of China's electricity is produced using coal-fuelled power plants, which has resulted in serious air pollution, especially in coastal or industrial cities.

However, comparatively long construction lead times and high initial investments are major obstacles for hydropower project planners to overcome.

Pan Jiazheng, vice-president of the Chinese Academy of Engineering, said the State should provide preferential loans and tax reductions to promote the construction of hydropower projects.

In Northwest China, especially in coal-rich areas such as Inner Mongolia and Shaanxi, more pit-head power plants are expected to be built near coal mines. Electricity generated in this way will be transmitted to the eastern areas.

China has created a primary framework for the electricity-transmission programme, including three major transmission lines, from Shanxi Province and the Inner Mongolia Autonomous Region to Beijing and Tianjin and Hebei Province; from Guizhou and Yunnan provinces to the city of Guangdong; and from the Gezhouba Power Station in Hubei Province to Shanghai.

Since oversupply still prevails in the current electricity market, it is urgent to accelerate reforms to separate the operation of the grids from the power plants to pave the way for more fair market competition and to make room for relatively inexpensive electricity from the west.