(Yicai Global) Oct. 25 -- To solve the problem of excessive hydropower in southwest China, the country must speed up the planned construction of hydropower export channels and strive to increase the power export capacity of Sichuan and Yunnan provinces by more than 20 gigawatts and 13 gigawatts, respectively, between 2016 and 2020, says a whitepaper the National Development and Reform Commission outed online.

Southwestern China boasts rich hydropower resources, but the region's power demand is substantially lower than power supply because of a less-developed local economy.

The NDRC circular calls on State Grid Corporation of China and China Southern Power Grid Co. to complete the construction of northwest Yunnan-Guangdong ±800kV direct current (DC) transmission project and start the construction of the ultra-high-voltage DC transmission project for Sichuan to export hydropower to Jiangxi province and the electricity transmission project for Wudongde power plant to export hydropower to Guangdong and Guangxi provinces as quickly as possible while promoting the construction of the Baihetan hydropower station and hydropower export channels on the upper Jinshajiang River.

Besides calling for exporting more excess electricity, the circular also urges Sichuan and Yunnan provincial governments to coordinate the development of projects currently under construction, maintain reasonable development of hydro, wind and solar power and strive to avoid new hydro energy waste.

The circular also encourages hydropower exporters and recipients to carry out cross-province market-based transactions via negotiations and bidding, and urges power-receiving regions to cut their thermal power supply to make way for hydropower imported from other regions via reasonable mechanisms.

"Measures unveiled in the circular generally cover all the challenges encountered in hydropower consumption in Southwestern China," an insider from a hydropower company in Yunnan told Yicai Global, "but the key lies in implementation," the source added.