In the coming four years, Shandong Province will close coal-fired power plants totaling 4 million kilowatts, which is expected to reduce the emissions by more than 120,000 tons of sulfur dioxide.

According to local media, by the end of 2006, Shandong Province had a total of 857 100,000 kilowatt or less coal or oil fired power units with a total capacity of 13.1388 million kilowatts, which accounted for 26.3% of the province's total power capacity.

Fei Yunliang, director of Shandong Provincial Development and Reform Commission, has reportedly said they would strictly control the access of electricity programs and forbid the construction of 300,000 kilowatt or lower coal-fired power units. They would also forbid enterprises from building or using coal-fired power units and control the existing public power plants from turning into private power plants for some enterprises.

Wang Renyuan, vice governor of Shandong Province, has told local media that the province would set up a compensation mechanism for withdrawing fire power plants and promote the use of wind power, solar power and other biologically renewable power to make up for the shutdown of small size coal-fired power units.