Coal news and updates

Non-coal generation plants accounted for half of China’s total power capacity share for the first time in 2020, while the power output of non-fossil fuels made up one-third of the nation’s power output, says Fitch Ratings in its quarterly China Power Watch.

 

The share of coal-fired power capacity in China’s fuel mix dropped to below 50% for the first time in 2020, given strong renewable installations. We expect the share to fall by at least 3pp yoy in 2021, as China pushes towards carbon neutrality and renewables addition stay strong. Collectively, non-fossil fuels produced 34% of China’s power output over the year, which was 1% higher than in 2019.

 

Power trading volume continued to grow in 2020, meeting 42% of China’s power consumption. This has led to lower average tariffs for leading coal-fired power gencos, although price pressure has been somewhat alleviated by narrowing discounts due to more rational market competition throughout the year, and the robust power demand rebound and coal price hike in 4Q20.

 

Power gencos with large non-coal capacity in their fuel mix tend to see higher average tariffs, despite expanded trading, as price pressure from trading is offset by a higher share of generation from wind and solar power, which charges higher tariffs than coal-fired power.

 

Source : https://www.hellenicshippingnews.com