China's capacity to generate electricity is expected to grow by 10.5 percent a year until the end of the decade, to fuel its fast growing economy, according to the State Electric Grid Corporation.

The growth rate will be adjusted downward to 6.7 percent for the 2011-2015 period and further down to 4.17 percent for the 2016-2020 period, says the report on the longer-term development strategy for the country's power industry.

According to the report, by the end of 2010, China will need 3.81 trillion kw/h of electricity, with its total installed capacity expected to reach 852 million kw.

Between 2011-2020, China will add about 520 million kw to its total installed capacity, which will amount to 1.33 billion kw, says the report.

The report predicts that China's electricity consumption will outdo the country's total consumption of all types of energy in terms of growth rate.

The electricity consumption will grow at an average annual rateof nine percent from 2006 to 2010, a bit higher than the forecast GDP growth for the five-year period.

The report says China's demand for electricity will grow 5.8 percent in the 2011-2015 period and 3.9 percent in the 2016-2020 period.

After a big short supply of electricity in the summer of 2004, China revved up construction of power projects, the report notes.

Demand and supply largely balanced last year, when more than 100 million kw was added to the country's total installed capacity.

The report forecasts new electricity generating units with a combined installed capacity of more than 75 million kw will come on stream this year.

The report says China will focus on construction of hydro and nuclear power stations and develop new energy sources to gradually reduce the share of coal and gas-fueled generating units in the total installed capacity.