2003 was the first year after implementing the Program of Power Institutional Reform put forth by the State Council, with the separation of power plants from power grids and reorganization of the state-owned power assets basically completed. Under the correct leadership of CPC Central Government and the State Council, the power institutional reform progressed smoothly and power systems operated stably.

Driven by sustained rapid growth of national economy, both electricity generation and consumption in China had the tendency of parallel rapid increase in 2003, a year with fastest growth rate since open and reform policy. In this year, the national electricity generation amounted to 1905.2 TWh, or 15.17% higher than the previous year; and the electricity consumption of the whole society amounted to 1889.1 TWh, or 15.29% higher than the previous year. The nationwide power shortage situation, however, became more and more severe, twenty-two provinces (autonomous regions, municipalities) suffered from load curtailments, in which, the most severe regions included Zhejiang, Jiangsu, Shanghai, Yunnan, Guizhou, Hebei (southern area), Shanxi, Inner Mongolia (western area), etc. Dealing with this rigorous power supply situation, under the unified disposal of the State Council, all related units had made concerted efforts and taken effective measures to alleviate power shortage situation and safeguard safe and stable operation of the power system.

In line with accelerated power constructions, a batch of key power projects proceeded smoothly. By the end of 2003, the national total power installed capacity hit 391.4 GW, or 9.77% increase over 2002. The world renowned Three Gorges Project duly realized the three tremendous targets water storage, navigation and power generation. There were six units put into operation in succession by the end 2003, which made the total installed capacity to 4200 MW and an accumulated electricity generation of 8.607 TWh, created a world record of installation and commissioning for hydropower units. The projects of power transmitting from west to east, mutual complementary between north and south and national power grid interconnection, including a batch of key projects such as the DC transmission project from the Three Gorges to Changzhou, the Three Gorges AC transmission and substation phase II project, the DC transmission project from the Three Gorges to Guangzhou, the interconnection project between Central China and North China power grids, the interconnection project of the second circuit between Fujian and East China power grids, the Tokto power send-out phase I project, the 500 kV AC transmission and substation project from Guizhou to Guangdong, etc. all were successfully commissioned.

In 2003, the power environmental protection and resources conservation were further enhanced. The State started a new pollution charging system, and revised and issued the Emission Standards of Air Pollutants for Thermal Power Plants. The related governmental departments issued new requirements on SO2 control for coal-fired power plants. The electric power industry and power enterprises placed higher priority on environmental protection and resources conservation; the power capacity newly equipped with flue gas desulfuration equipment broke through 10 GW, which opened the prelude of equipping flue gas desulfuration equipment on a large scale.