Huaneng Yushe Electric Power Co. Ltd. (Huaneng Yushe Power Plant) was established by Huaneng Power International, Inc. and Shanxi International Power Group, Ltd. with investment shared by the two at 60:40 ratio. The power plant is located at 10 km from Yushe County, adjacent to Taijiao Railway. There are abundant water resources and coal resources in the locality and convenient transportation. It is the only medium sized thermal power plant in Jinzhong city. The total planned capacity of the power plant is 2000MW. The first phase consists of 2x100MW steam turbine generator units, which commenced operation respectively in August and December of 1994 after construction started on October 31, 1992. The construction of the second phase project, which consists of 2x300MW domestically manufactured sub-critical air-cooled coal-fired FGD power generating units, has been commenced on November 30, 2002. Both units are scheduled for commencement of operation in the second half of 2004.