Dezhou Power Plant is located in the city of Dezhou and had originally been wholly-owned and operated by Shandong Huaneng. Phase I and Phase II of the Dezhou Power Plant commenced commercial operation in 1991 and 1994, respectively. Currently, it has an installed capacity of 1,200MW. Phase III of the Dezhou Power Plant had already been approved by relevant departments of the State to commence construction in September 1999. Using equipment from General Electric, Babcock Borsig Power and Siemens Aktiengesellschaft, the Plant is building two 660MW coal-fired units. The two units for Phase III are expected to be commenced construction and to be in commercial operation in the fourth quarter of 2002 and 2003, respectively. After all the units commence operations, the installed capacity of the Dezhou Power Plant will be increased to 2,520MW.
The distance between the Dezhou Power Plant and the city of Taiyuan of Shanxi Province, where the coal supply is located, is approximately 200km. As the Power Plant is located at Shijiazhuang along the Dezhou rail, the transportation of coal to the Power Plant is very convenient. The Power Plant and the Dezhou rail are linked by a special line of 3.5km which is owned by the Company. Coal consumption rates for power sold were 351gram/kWh and 350gram/kWh for the years of 1999 and 2000, respectively. All of the electricity generated by the Dezhou Power Plant is delivered to the Shandong Power Grid for sale.