Conflicts between state planning, market development and environmental sustainability: A case study of the electric power industry in Shandong Province

Abstract

The Electric power industry in Shandong Province faces the dual challenge of economic growth and environmental protection. Analysis of the Electric Power Development Plan of Shandong Province indicates that Shandong Province's current power generation capacity can satisfy demand until 2013. After that, electric power shortages will appear and the gap between supply and demand will reach 149.25 billion kWh by 2020. Projected new coal-fired power stations will consume 103.28 million tonnes of coal and 474.07 million m3 of water resources producing significant extra emissions of SO2, soot, CO2, NOx, waste water, coal ash and slag. These emissions will exceed established environmental capacity and enhance the greenhouse gas contribution by around 50%. Water shortage and depleting coal reserves will restrict electric power development in Shandong Province. Increasing levels of pollutants, especially SO2 and soot, released by the coal-fired power industry, will bring serious pressures to Shandong Province's human population and urban and natural environments. These predictions suggest that a radically new approach to meeting the demands of economic growth is required if Shandong is to improve its air quality and meet international targets for greenhouse gas emissions.