Construction of a "green" 20-billion-yuan (US$2.41 billion) fuel power plant - designed to reach an installed capacity of 60 million kilowatts - began in Raoping County in eastern Guangdong Province on Wednesday.

Jointly built by Guangdong Province and Beijing-based Datang Electricity, Guangdong Chaozhou Sanbaimen Fuel Power Plant is one of the key electricity projects in the province before 2010, said an official from Guangdong Electricity Group. The plant will import advanced low-nitrogen burning technologies and other environmental protection equipment from abroad, the official said.

The first phase of the project will include construction of four generating units, each of them with a capacity of 6 million kilowatts.

The first phase alone of the coal-burning plant, which will generate 1.2 million kilowatt hours annually when it comes on stream in December 2006, will cost more than 10.7 billion yuan (US$1.29 billion).

The project is expected to contribute to the economic growth of the Chaozhou-Shantou region in the eastern part of the province.

The region has only one power plant, Shantou Power Plant, which - with an installed capacity of only 600,000 kilowatts - is unable to meet demand.

The Chaozhou-Shantou region is expected to consume more than 2.66 million kilowatt hours in 2005 and 4.28 million kilowatt hours in 2010.

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