This report by the China Electric Power Promotion Council analyzed the growth of the power industry and forecasts long-term demand, which form the basis of policy recommendations. One of the reports main recommendations is that China adopt Scientific Electric Power Planning (SEPP), an approach that reflects multiple social targets and least total social cost. The basic principles of SEPP include (1) setting up a planning system, (2) promoting the development of new technologies for the power sector, (3) incorporating demand-side management (DSM), (4) adjusting power supply structure, and (5) setting up an environmental impact assessment model to inform planning decisions. The report also recommends the use of the reliability principle [Installed capacity = (maximum load) x (1+ reserve percentage)] to determine the power supply reserve rate.