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The national Development and Reform Commission released the suggestions on strictly restraining from the unordered construction of power station projects in Nov 2004. The issue of this suggestion and macro control policies has caused some influences, especially on the situation of electricity short and even leading to an over-plus situation. However, generating equipments has still been in short supply around the country since 2005 and such situation remained unchanged even with the high growth rate in the first half of 2006. In particular, the number of large units increased rapidly. Steam units of 600 000 kW were added, which is 17 more than the same period of 2005.

With regard to the industrial policies, foreign investment into equipment manufacturing of thermal power, hydropower and nuclear power are all encouraged by the government, for instance, the supercritical thermal power units over 600 000 kW.

Generating equipment will develop toward consumption reduction and efficiency improvement. Taking coal-fired power as the examples, at present, coal-fired power units averagely consumes coals of 374 gram per kilo-watt-hour, 55 gram higher than world advanced level. So it is crucial for the future development of coal-fired power to enhance conversion efficiency and to save coal resources. One of effective ways to improve the efficiency of coal-fired power units is to increase the proportion of supercritical units. Therefore, the generating equipment with high-level technology will be provided with a promising future.

With the data from National Bureau of Statistics , China Customs and Machinery Industry Federation, this report gives a detailed analysis on production, sales, market, industry structure and import & export of China’s generator and units manufactures. It also forecasts its future development and provides power enterprises, power equipment manufactures and investors with valuable reference.