The problem took place when China witnessed an unprecedented growth of energy production, which was even faster than its GDP growth in the period of 2001-2005. Last year energy output reached the equivalent of 1.97 billion tons of coal, up 15 percent on a year before.
Lift of living standards has propelled demand. But even with major cities like Beijing and Shanghai, the per capita consumption of electricity still cannot compare with that of developed countries. The odds are roughly 1,000 KWH to 8,000 KWH.
The major factor for the energy shortage was, rather, the overheated and improperly structured economy, accompanied by a wasteful style of energy utilization. "The fast growing economy is a basic cause for the power shortage," says Zhou Dadi, director of Energy Institute under the National Development & Reform Commission (NDRC).
http://news.xinhuanet.com/english/2005-10/03/content_3577407.htm