Chinese Power Plants Shutting Down Due To High Coal Prices

Posted by Big Gav in china, coal

The Business Insider reports that some Chinese power plants are having enforced shutdowns over summer due to high coal prices - Rising Coal Prices Are Driving Power Plants Out Of Business In China.

The State Grid Corp of China warned this week that it would shut down some generators over the summer, reducing output by as much as 40 gigawatts, according to Global Times.

Power companies are struggling as coal prices have risen 75 percent since 2007, while electricity prices have risen only 15 percent. China's five biggest coal power businesses have posted combined losses of $9.23 billion since 2008.

Energy analyst Li Chaolin tells Global Times: "Many coal plants have shut down their generators because the more they produce, the bigger the losses they will suffer."

An editorial in the Oriental Times complains: "The coal industry is in a market economy, but the power industry is still in a planned economy."

2 comments

The Lorax says 7:53 PM

Maybe they should raise electricity prices instead of closing power stations?

Big Gav says 10:14 PM

I guess that could have ripple effects through the economy and the political system that they don't want to experience...