CEC: Coal-fired linkage and coal-fired power integration is the way out for power companies

On March 9, the China Electric Power Enterprise Federation (hereinafter referred to as CEC) stated that in recent years, power generation companies have been unable to effectively channel the pressure of rising costs caused by the continuous rise in coal prices, and production and operations are facing serious difficulties. From a long-term perspective, the establishment of a market electricity price formation mechanism and the promotion of power system reform are fundamental solutions to the current contradiction between coal and electricity. At the same time, the country should encourage the integrated management of coal and electricity.

In a telephone interview with the reporter, Bai Jianhua, deputy chief economist of the State Grid Energy Research Institute and director of the Institute of Energy Strategy and Planning, also stated that at present, the country’s inflationary pressure is high, and under the circumstances that the on-grid tariff has not yet been adjusted, the power generation enterprises should strengthen coal-fired power. Integration, increase coal resources, high-priced coal in the internal digestion. At the same time, conditions should also be suitable for the development of some clean energy, such as hydropower and wind power.

At the same time, he said that it is only a matter of time before the country restarts coal-electricity linkage and increases the on-grid tariff.

The coal-electricity linkage policy began at the end of 2004. At that time, the state stipulated that a coal price linkage cycle should be conducted for not less than six months. If the average coal price in the cycle is greater or equal to 5% over the previous cycle, then the The price will be adjusted accordingly.

However, after the introduction of the policy, it was difficult to implement, and so far it has only been linked four times. During this time, it has repeatedly reached the regulations but it has not yet achieved linkage. For the fifth round of linkage, there was news last year that the fastest start would be after October 2010, and the on-grid tariff could be raised by an average of 1.5-2.5 cents/kWh, but the fact is that the linkage has been shelved again.

Recently, the "two sessions" representative members of the five power generation group systems all requested the restart of the coal-electricity linkage.