On October 27, the China Electricity Council released the forecast report on the supply and demand of electricity in the first three quarters of 2011. It is predicted that the nation's largest power shortage will reach 30 million to 40 million kilowatts this winter and next spring. This conclusion exceeds the previous forecast of the Electricity Regulatory Commission. On October 20, the SERC predicts that the maximum power shortage this winter and next spring will be about 26 million kilowatts. In 2011, China’s total installed power capacity will exceed 1 billion kilowatts, but local power shortages have not been eased. Cai Wen, director of the Planning and Consulting Department of CEC, stated that the growth rate of electricity consumption is still very fast. However, the changes in the macroeconomic environment have led to an increase in the energy use of the two high-power industries. However, behind the strong demand for electricity, the growth in electricity supply was less than expected. From January to September, the country's infrastructure construction capacity increased by 49.62 million kilowatts, a decrease of 2.24 million kilowatts year-on-year. The start-up of thermal power projects is even more worrying. In the first three quarters of the year, the new size of thermal power projects in China was 12.62 million kilowatts, a year-on-year decrease of 13.38 million kilowatts. One person in the power industry stated that it is reasonable to use electricity growth below the economic growth rate by 1 to 2 percentage points. However, at present, China's actual economic growth rate is about 9%, while electricity consumption growth is close to 12%. The speed of power project construction does not match the pace of economic development. From the traditional point of view of the power industry, coal-fired power plants are undoubtedly the most reliable and stable power source. The CEC pointed out that the shrinking size of thermal power will have a greater impact on future power supply protection. From January to August, thermal power production enterprises realized a total profit of 12.2 billion yuan, a year-on-year decrease of 39.1%, and continued negative growth this year. The power industry's sales profit margin is 3.5%, of which thermal power business sales margin is only 1.5%. Poor profitability and low returns have affected the power industry's ability to secure supply and sustainable development. Since August 31, the average price of thermal coal in the Bohai Rim has increased for eight consecutive weeks, a record high. Coal prices may still rise, which will further weaken the profitability of power generation companies and exacerbate the power supply shortage in some regions. Moreover, because of the pressure of energy saving and emission reduction targets and the control of total coal consumption, thermal power has not received corresponding policy support in recent years compared with new energy sources such as wind power and solar energy. The superposition of various factors makes power generation enterprises lack of enthusiasm for the development of thermal power. Should not weaken the status of thermal power. An industry source said that thermal power development and energy-saving emission reduction are some conflicts. If there is no reliable connection energy, thermal power should continue to build.