In today’s talking points: Combating Rising Coal Prices; China’s 13th Five-Year Plan for Power Development; Dalian Commodity Exchange Frenzy Continues; China to increase coal power capacity by 20% by 2020
Combating Rising Coal Prices
In a bid to develop a strategy to halt the persistent rise in coal prices China’s major coal producers and power groups have signed a long-term deal at a fixed price to ensure stable coal and power supplies in the country. Zuo Qianming, an expert with China National Coal Association, said the surging coal prices can be linked to China’s efforts in cutting overcapacity and regulating its coal sector. He likewise pointed out that “Despite the fact that thermal coal prices have hit a record in recent weeks after the government tried to tighten supplies for utilities, causing much concern in industry and among the public, it is still demand driven,”
Read More at China Daily
China’s 13th Five-Year Plan for Power Development
Nuclear power continues to feature prominently in China’s power development strategies, where safety and improved construction of independent nuclear demonstration projects are highlighted in the 13th Five-Year Plan for power development. The report was jointly released on Monday by the National Energy Administration and the National Development and Reform Commission and is an important guide to China’s resource allocation and development stategy. According to the released Five-Year Plan, the next five years will see approximately 30 million kilowatts of nuclear energy facilities going into operation and have over 30 million kW of such facilities under construction. By 2020, China will have 58 million kW of installed nuclear power, up 16.5 percent year on year.
Read More: China Daily
Dalian Commodity Exchange Frenzy Continues
China’s commodity futures markets continue to surge, and observers have seen coking coal futures traded on the Dalian Commodity Exchange hit their 10 per cent limit on Monday, effectively pushing the spot price more than 7 per her higher overnight to $US289.30 ($375.55) a tonne. The price is now closing in on its 2011 boom time highs, having risen from just $US73.40 a tonne in November last year. Similarly, iron ore futures pushed spot iron ore prices to a seven-month high of $US67.43 a tonne on Monday, whilst Dalian iron ore futures rose another 3 per cent the next day, and coking coal futures were flat. The run has extended into soft commodities, with egg futures surging in the past six weeks.
Read More at Sydney Morning Herald
China to increase coal power capacity by 20% by 2020
Chinese officials have said they are planning to increase coal power capacity by 20 per cent within the next 4 years, despite its commitment to cut greenhouse gas emissions. It has been reported that China’s National Energy Administration is aiming for a 200-gigawatt increase in coal-fired electricity capacity. It would therefore mean coal generates 55% of the country’s electricity. China also plans to boost non-fossil fuel power from 12% to 15% over the same period.
Read more at The Hill