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China is expected to see a balance of electricity supply and demand with somewhat of a surplus, said a senior official with China Electricity Council (CEC) Monday.

Wang Yonggan, Secretary-General of CEC, made the remarks at a press conference for the "2005 China Power Forum" which is due to be held from Wednesday to Thursday.

According to Wang, China saw a newly installed power capacity of over 50 million kilowatts in 2004, and the figure will remain at 70 million kw annually from 2005 to 2007.

By the end of 2007, China will boast an installed power capacity of 650 million kw, by which time the electricity supply and demand of the country will be basically balanced, and will even have some surpluses, said Wang.

China is the second largest installed power capacity owner and the second largest power generator in the world next to the U.S., said Wang.

An annual installed power capacity of 70 million kw means an annual investment of nearly 350 billion yuan (43.2 billion US dollars). China has become one of the largest power markets in the world, he said.

However, the rapid development of China's electricity industry has also created problems such as over-investment, high consumption, pollution and inefficiency as well as various infrastructural problems, said Wang.

To solve these problems, China should improve its economic policies to explore a new environmental-friendly industrialization with better profits, lower energy consumption, and good human resources development, he said.

Called "A New Industrialization Road of China's Power Industry Upon Economic Globalization," a two-day forum involving over 400 officials, entrepreneurs and experts will focus on those problems.

The forum is being sponsored by CEC and organized by the PennWell Corporation from the US.

(Xinhua News Agency August 9, 2005)