Overcapacity Challenges



China has invested in building and continues to invest in building out infrastructure across industrial, transport, and urban sectors. In 2013, China produced over half of the steel, cement, and flat glass in the world and is the largest country in terms of energy production and consumption. As in any developing economy, there is a risk of inefficient investment in chasing growth targets often resulting in overcapacity. For China, this has become a serious issue. There is overcapacity today in several industrial sectors such as steel, cement, chemicals and in some locations power generation. The upshot has been to create stranded and underutilised assets that are often inefficient and have locked in early generation technologies with some creating serious environmental issues. Looking to the future, the question is how China can be smarter in making industrial investments.


Carbon Capture Load Period Total System Cost Power Generation Capacity Capacity Utilisation Rate 
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Copyright information

© Springer Science+Business Media Singapore 2016

Authors and Affiliations

  1. 1.Tsinghua UniversityBeijingChina
  2. 2.BP International Ltd.Sunbury-on-ThamesUK

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