The China Electricity Council announced that the 2011 power data showed that thermal power investment continued to decline rapidly, from 2,271 billion yuan in 2005 to 105.4 billion yuan in 2011. The year-on-year loss of thermal power has caused power companies to lose the power and ability to invest in thermal power. Experts said that the rapid decline in thermal power investment may lead to insufficient thermal power installations in the next few years, resulting in "hard power shortage." The industry insiders pointed out that the power cuts imposed by the cement industry due to power shortages for many years will continue to be staged in 2012. “It is expected that this phenomenon will occur in the first quarter.†According to reports, as of the end of last year, China's thermal power installed capacity reached 765.46 million kilowatts, accounting for 72.5% of the total installed capacity of 1.056 billion kilowatts. However, in 2011, thermal power only installed a total of 58.86 million kilowatts, far lower than the previous year's level of about 80 million kilowatts. As the main force of power generation, the growth rate of thermal power generation will definitely affect the overall power supply situation. According to a report released by the Enterprise Research Institute of the Development Research Center of the State Council, the power gap in China in 2011 was 30 million kilowatts. In 2012, the power gap will continue to expand, or it will reach 50 million kilowatts.
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