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A summer power shortfall in China, the world's second largest electricity consumer after the United States, is likely to be 20 percent higher than previously expected, Xinhua news agency reported on Tuesday.

China's State Grid Corp. has forecast that demand will outpace supply by 30 gigawatts this summer, Xinhua said, quoting an internal company teleconference. That compares with a government prediction of a 25 gigawatt gap.

Last summer China grappled with its worst power shortage in two decades, estimated at around 40 gigawatts, which meant factories in badly hit areas had to change operating shifts while local officials ordered lights dimmed and temperatures raised in malls, hotels and offices.

Widespread brownouts also boosted demand for diesel as people fired-up individual generators powered by the fuel to keep their air-conditioning running and lights on.

The government has encouraged massive investment in power stations and more efficient use of capacity to tackle shortages which some economists say dent national growth.

This year it expects around 65 gigawatts of extra generating capacity to come on line, taking the country's capacity above 500 gigawatts, compared with 440 gigawatts at the end of 2004.

It has also discouraged investment in power-intensive industry such aluminum-smelters.

But many of the new plants will not start generation until the second half of the year, so will be little help in alleviating a summer crunch likely to hit hardest in the southern and eastern regions that are key drivers of the national economy.

Xinhua said profits of the State Grid Corp hit 4.0 billion yuan (US$483 million) in the first four months of this year, without specifying which type of profit, after the firm sold 457.1 billion kilowatt hours of electricity.

The company, which owns and operates more than half of the country's power grid, is widely expected to seek a multi-billion dollar overseas stock listing.