Chinese companies lose on thermal power


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today

China Power Generation Losses narrowed to 6 billion yuan as wind and hydropower offset thermal power deficits; on-grid tariffs, coal costs, and NDRC pricing controls continue to pressure profitability, the China Electricity Council said.

 

Story Summary

Losses fell to 6b yuan as wind and hydropower offset thermal shortfalls; coal and tariff caps curb profits.

  • Overall losses narrowed to 6b yuan with wind and hydropower gains.
  • Thermal power losses exceeded 60b yuan over the past three years.
  • Modest on-grid tariff hikes failed to restore coal profitability.
  • Coal prices liberalized; on-grid and retail power tightly regulated.

 

China's five state-owned power generating groups lost more than 10 billion yuan US $1.5 billion on their thermal power operations in the first four months of the year, an industry official said, as the country braces for the worst summer power crunch in years.

 

With profitable wind and hydropower businesses included, overall power generation losses narrowed to 6 billion yuan, Xue Jing, director of the statistics and information department under the China Electricity Council, said on the sidelines of a conference in Beijing.

The council, representing major power generating and distributing companies, and monitoring trends like power consumption declines in 2008 across China, is overseen by the State Electricity Regulatory Commission.

The losses came after the five groups, parents of China Power International Development Ltd, Datang International Power Generation Co Ltd, Huadian Power International Corp Ltd and Huaneng Power International Inc, racked up more than 60 billion yuan in losses from thermal power as coal prices hit power giants across the sector over the past three years, putting pressure on the government to consider power tariff increases to encourage generation in coming months when demand rises.

The five groups own about half of total domestic power generating capacity, with one major power producer cutting spending to navigate losses.

The government was reported to have increased on-grid power tariffs in parts of the country last month, signaling another round of price increases nationwide, but industry officials and analysts said the rise was too small to restore profitability for many coal-fired power generators.

The National Development and Reform Commission, the price-setting agency, did not confirm the increase.

China has largely lifted price controls on coal, the energy source for more than 80 percent of its power generation, but tightly regulates on-grid and retail power prices, making it hard for generators to pass on rising coal costs to power users.

 

Related News

Related News

Feds "changing goalposts" with 2035 net-zero electricity grid target: Sask. premier

Canada Clean Electricity Regulations outline a 2035 net-zero grid target, driving decarbonization via wind, solar,…
View more

Construction starts on disputed $1B electricity corridor

New England Clean Energy Connect advances despite court delays, installing steel poles on a Maine…
View more

Physicists Just Achieved Conduction of Electricity at Close to The Speed of Light

Attosecond Electron Transport uses ultrafast lasers and single-cycle light pulses to drive tunneling in bowtie…
View more

Ireland announces package of measures to secure electricity supplies

Ireland electricity support measures include PSO levy rebates, RESS 2 renewables, CRU-directed EirGrid backup capacity,…
View more

Electricity bills on the rise in Calgary after

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility,…
View more

Energy Department Announces 20 New Competitors for the American-Made Solar Prize

American-Made Solar Prize Round 3 accelerates DOE-backed solar innovation, empowering entrepreneurs and domestic manufacturing with…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.