South China's Guangdong province has planned to invest 8 billion yuan (nearly US$1 billion) to build a power storage hydroelectric station, local officials said on Thursday.

Construction of the project is scheduled to start next year. Its first generating unit is expected to produce power in 2008 and the remaining seven generating units will be operational in 2011.

The station, to be located in Huizhou City, has a designed capacity of 2,400 megawatts, capable of generating 4.562 billion kwh of electricity a year.

Local officials said the station is part of China's gigantic project to transmit power from its energy-rich west to its east.

Guangdong, which accounts for one third of the country's foreign trade, has been suffering from a shortage of energy.

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