Beijing and Inner Mongolia will make a joint investment of about 3.87 billion yuan in the third phase project of the Haibowan Power Plant in North China’s Inner Mongolia Autonomous Region. Total installed capacity of the project will be 1.2 million kW and annual power output is expected to reach six billion kWh. Plus the other Beijing-Inner Mongolian power cooperative projects, the total installed capacity may top 10 million kW by 2008. Inner Mongolia is an energy-rich area in North China. It ranks second in China in proven coal deposits and has advantages in constructing large pit-mouth power plants. Power load and consumption grew rapidly in Beijing in recent years. The peak load was 7.05 million kW in 2001, and the power consumption, 38.3 billion kWh. But, as no conventional coal-fired power plants are allowed in Beijing and the neighboring areas, Beijing has to strengthen cooperation with Inner Mongolia in the power sector. Beijing has so far invested 2.09 billion yuan in the western power grid of the region, completing or still constructing 2.92 million kW. The power grid has sent 1.38 million kWh of electricity to Beijing, accounting for one-fifth of the city’s annual power consumption.