Investment in thermal power decreased 26 percent in 2011, the sixth successive years, stated in the Annual Report of Power Regulation.

Five major power generators, including China Huaneng Group(00902.HK), China Guodian Co.(800795.SH), China Huadian Co.(600027.SH), Datang International Power Generation Co., Ltd.(601991.SH), and China Power Investment Co.(02380.HK), loss 15.117 billion in 2011in total, while profits decreased by 348.88 percent on a year base.

Since 2005, investment in the industry has been above 300 billion, but the figure has decreased to 105.4 billion, less than half of the investment in 2005, and decreased 26 perdent of the investment in 2010.

Debt ratio of thermal power industry is as high as 85.71 percent, which is unlikely for companies to have much investment, but 80 percent of the country's power supply relies on thermal power.

While the government is trying to encourage the investment in clean energy, especially in the wind power onshore or offshore wind farms, "Clean energy can't meet the requirement of large amount of use until 2030," said Lin Boqiang, professor of Energy Research Center in Fudan University. Clean energy slightly increased 0.9 percent in 2011.

According to Lin, the crucial reason for investment doldrums of power industry is coal price, which has been at the high level for a long time, while electricity price was controlled by the government and was kept in the low level.

26 percent investment decrease means a coming energy crisis for energy, said Lin, "Investment recovery in thermal power plants should be the top priority at the moment, one way to solve the problem is to attract private capitals."