This paper conducts research of economies of scale in capital , installed capacity and the net generating capacity in Chinese electricity generation enterprises whose essential business is involved in fuel electric plants. With the software tool Spss , it simulates the relationship between the generation cost and capital, installed capacity and generating capacity and gets the minimum efficient scales . Applying the two kinds of DSA , one of which adds the scale equations, the paper get the equation of factors and the minimum effective scale in generating capacity. Characters and proper ranges of different methods are listed . The result of research give some theories and data support in different aspects of generation sector leading investment suitably and effectively, keeping proper competition, developing consistently. It can give departments of electricity and electric enterprise some value and referenced advice while they establish policies , rules and strategies .
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