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China Power Glut Seen Lingering Five Years on Slower Growth

  • Signs of bad overcapacity began in 2013, says IHS’s Zhou
  • Coal, renewables to be hit the hardest by overcapacity: Zhou
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China’s electricity overcapacity will continue for another five years as demand growth slows and new projects come online, according to IHS Market Inc.

China started showing signs of “bad overcapacity” in 2013 and 2014, and hit a high in 2015 due to new plants coming online, according to Xizhou Zhou, head of China energy research at IHS Markit. The overcapacity will likely remain as it would be too difficult to reverse construction plans for new power plants, he said in a phone interview on Friday.