While China's power sector continues to be in a league of its own, storm clouds are gathering on the horizon. According to BMI's Country Risk analysts, the Chinese economy is likely to slow down further over the coming months. Although newfound reform momentum holds the potential to help the economy grow out from under its credit excesses, we continue to believe that the hangover effects of China's economic stimulus are yet to be felt, and cooling credit growth is likely to reveal these effects over the coming quarters. This considered, a slowdown in power demand appears to be on the cards. Meanwhile, the country is trying to ease its reliance on coal, focusing on cleaner forms of power generation. However, we still expect coal-fired capacity to grow in real terms and dominate the energy mix to the end of our forecast period.