China IPPs all geared up for stronger growth in installed capacity

This is for the next 2-3 years.

According to Barclyas, IPPs in China are bracing for stronger growth in their installed capacity in the next two to three years. 

The top five utility companies have c85GW of approved projects in their pipelines, which is c35% of their installed capacities and c10% of national thermal power capacity.

Barclays said though that arguably, the planned capacities are more environmentally friendly and, therefore, will displace older capacities, but they are still not helpful for a recovery in utilization rates. 

"Declining utilisation rates and tougher environmental regulation could lead to a period of consolidation for the IPP sector in China, where the top utilities are likely to emerge as eventual beneficiaries, in our view," it said.