In today’s talking points: New guidelines released to encourage M&As in coal industry; China encourages the use of new energy cars; China set to lead in renewable energy; South Australia to develop world’s largest thermal solar plant
New guidelines released to encourage M&As in coal industry
According to a release by the National Development and Reform Commission (NDRC) in conjunction with other government agencies, China is likely to encounter a number of high-profile coal-group mergers and acquisitions between 2020 and 2029. Major players have been encouraged to expand their businesses from simple coal production to services in line with the economic transformation policy advocated by the Chinese government. In recent years, China has been faced with issues stemming from excess coal capacity, outdated technology, imbalanced resources allocation and a lack of production safety in the coal industry, with these guidelines seen as a long-awaited step by Chinese authorities in the right direction.
Read more at: China Daily
China encourages the use of new energy cars
According to the Ministry of Finance, alongside the State Administration of Taxation, the Ministry of Industry and Technology and the Ministry of Science and Technology, China looks set to reduce the cost of purchasing new energy vehicles for its citizens. From the beginning of 2018, all purchasers of new energy vehicles will be exempt from paying traditionally compulsory vehicle purchase taxes. The scheme is set to last for years, commencing January 1st and running until the end of 2020.
Read more at: China Daily
China set to lead in renewable energy
As the USA retreats from the industry, it looks that China is set to become the next world leader in renewable energy production. According to the Institute for Energy, Economics and Financial Analysis (IEEFA), while China is still the world’s largest emitter of greenhouse gases, it has thus far invested US$44bn in renewable energy, amounting to a 38% increase each year. Since the commencement of the Belt and Road Initiative, China has additionally become the world’s leading exporter of environmental goods, with solar energy product exports alone totalling $8bn. In addition, China looks to be positioning itself to provide for a growing battery market, with IEEFA reporting heavy investment in minerals such as lithium and nickel.
Read more at: The Guardian
South Australia to develop world’s largest thermal solar plant
The South Australian government has approved a $650 million proposal by SolarReserve to develop a 150-megawatt solar thermal plant in the Port Augusta region. Acting energy minister Chris Picton welcomed the development, stating it demonstrated South Australia’s commitment to becoming a global centre for the development of renewable energy. Clean Energy Council executive general manager Natalie Collard also praised the project, saying that “[South Australia] has already met its target of 50% renewable energy almost a decade early.” The facility is set to become the world’s largest single-tower solar thermal plant, estimated to displace 200,000 tonnes of carbon dioxide per year.
Read more at: Sydney Morning Herald