| The role of science and technology progress in economic development is discussed with living examples and economic theory. The adaptability of Cobb-Douglas production function and Solow's "remainder method"to electric power industry of our country is analysed. Considering the lack of electric demands resulted from the decrease of national economic growth since 1996, a series of scientific and reasonable methods of estimating the parameters of production function , optimizing economy items and processing various statistical date are presented. A simple and scientific method of calculating the contribution rate of science and technology progress to economic growth of electric power industry is found out through careful study .And the relevant computer program of the calculating method is worked out in order to calculate conveniently the contribution rate of science and technology progress to economic growth of provincial electric power companies, power plant and even a specific set of electric power. In chapter 3, the contribution rate of science and technology progress to economic growth of ShanXi province Electric Power Company during the period of 1993-1998 is calculated, and the calculation result is satisfactory. So the method proves to be correct and practical. At last, A series measures to improve the contribution rate of science and technology progress to economic growth of electric power industry are proposed, and these measures would be of certain guiding meanings for provincial electric companies to fulfill the norms of 2005 (EA=SO%) set by National Electric Power Company.
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