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Over the last two decades, China’s unprecedented economic growth has led to rapid growth in electricity demand. Supply has not always kept pace with demand growth. Power shortages occurred frequently during 2002-2005, notably in the high economic growth regions, such as the provinces of Shanghai, Jiangsu, Fujian, Anhui and Guangdong. A return to a more balanced supply and demand situation was achieved in most regions in 2006 and continued into 2007, as capacity expanded by approximately 200 GW over the last two years. A few regions still face potential shortages, due to transmission constraints or severe weather conditions.