Nearly 40 percent of small hydropower stations across China are out of service or not fully operational, the Economic Daily reported on Sunday.
Statistics from the Ministry of Water Resources show that by late 2012, China had established 49,387 small hydropower stations with an installed capacity of 63.47 million kilowatts, but they only generated 37.37 million kilowatts of power -- no more than 60 percent of the overall capacity.
China is determined to push forward reforms in energy production and consumption, according to Chinese Premier Li Keqiang at the first meeting of the incumbent National Energy Commission last month.
The country will embark on the construction of new nuclear power plants on the eastern coast, as well as hydropower stations, wind and solar power stations and ultra-high-voltage transmission lines to send power from west to east.
To diversify energy sources, China will promote the use of unconventional oil and gas such as shale gas, shale oil, coal-bed methane and tight gas.
China is the world's largest energy consumer. In 2012, it accounted for 20 percent of the world's total primary energy demand.
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