China to inject $1.5 billion to help state coal-fired power firms
13 May 2022
China has
pledged to inject 10 billion yuan ($1.5 billion) into its coal-fired power
firms to provide financial relief and support their efforts to guarantee power
supplies, state media said late on Wednesday, citing a cabinet meeting.
The new
funding was part of a wider package of policies announced by the State Council
to try to shore up China’s economy and support employment. It included 50
billion yuan in renewable energy subsidies allocated to central government
backed power firms.
The cabinet
said China would “optimise” its policies to ensure that its advanced coal-fired
power capacity would be fully utilised, adding that it would not permit any
power rationing.
Chronic
power shortages led to widespread industrial disruption last year, with
generators unable to pass soaring coal costs onto customers.
Though many
plants have struggled to make a profit, China started building 33 gigawatts of
new coal-fired power generation capacity last year, the most since 2016.
China has
pledged to start cutting coal consumption from 2026, but researchers estimate
that another 150 gigawatts of coal-fired capacity could go into operation over
2021-2025.
Source: Reuters