Thermal power project unit cost continues to decrease

The State Electricity Regulatory Commission released the “Cost of Electricity Projects during the Eleventh Five-Year Plan Period” shows that the construction costs of all types of power engineering units put into operation during the “Eleventh Five-Year Plan” period are mixed, and the overall trend of hydropower projects is rising. The overall trend of the project is declining. Wind power projects have started to decline.

The report shows that the “Eleventh Five-Year Plan” thermal power project final cost decreased from 3,815 yuan/kW in 2006 to 3,745 yuan/kW in 2010. According to the director of the State Electricity Regulatory Commission's Power Transmission Department, Miao Hong said that the main reason for the continuous reduction in the unit cost of thermal power projects is that technological progress and energy-saving and emission reduction policies have led to an increase in the proportion of large-capacity, high-parameter units. He said that technological advances, increased levels of fan manufacturing, and market competition factors have contributed to the decline in the prices of major equipment, which has become an important reason for the reduction in unit cost of wind power projects.

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