China could cut its coal consumption by 300 million tons annually, or 13.5 percent of the total last year, with energy efficiency measures, a report from a government economic agency said on Thursday.

However, the National Development and Reform Commission (NDRC) said in the report that the prospects of introducing basic energy efficiency moves to make the savings were "not promising".

The country urgently needed to upgrade aging industrial facilities, the report said. China had 500,000 small and medium-sized boilers, 90 percent of them coal-fired, consuming 400million tons annually.

Up to 70 million tons of coal could be saved by upgrading the technology and management of these boilers.

China was the world's biggest producer of energy-saving light bulbs, but only 30 percent of them were sold on the domestic market. More than 60 billion kilowatts of electricity could be cut if energy-saving bulbs were applied nationwide.

However, the NDRC acknowledged the country was experiencing intensive energy demand, and it took time for energy-saving measures to show effect.

Energy consumption growth exceeded the 10.9 percent economic growth rate in the first half year, said the report.

Energy consumption per unit of domestic gross product (GDP) was set to drop by 20 percent by 2010 from the current 1.39 tons of coal per 10,000 yuan of GDP.

The report suggested measures to meet the goal, including deeper industrial restructuring, more effort on energy saving projects, and the promotion of recycling.

(Xinhua News Agency August 4, 2006)