China Coal-electricity Contradiction and Solutions Indepth Report

Aiming at the coal-electricity contradiction phenomenon, and with Forward’s long-term tracking and collecting market data of coal-electricity industry, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry.

The "Notice on Well-conducting Electric Power Operation and Adjustment Work in 2011" distributed by the National Development and Reform Committee on March 28 points out, in most parts, the trend of electric power supply and demand is relatively tight in 2011. At the beginning of 2011, there have been 20 provinces implementing electricity orderly. It's predicted there will be a great gap between supply and demand for Eastern China, Northern China and South China in the summer peak.

The electricity shortage in off-season shows the increasing prominence of "market coal" and "planned electricity" contradiction. Due to coal price goes up, the power generation cost increases. However, the electricity price in the grid is unchanged, so thermal power plants lose heavily and the production enthusiasm decreases, which leads to under operation capacity. In terms of supply, coal-electricity problem: the unsolved price problem has been regarded as the rooted reason for all the time. In 2004, the electricity price reform launched the coal-electricity linkage mechanism, which led to the coal price continuously rose up along with the market supply and demand fluctuation. In this electricity shortage in off-season, electric coal shortage is attributed to the core reason once again.

In terms of demand, the bounce of high consumption: the enlargement of electricity shortage can not simply boil down to supply problem. As a matter of fact, the output of generated energy still maintained a steady growth at the beginning of 2011. In Q1, the power plants above designated size generated the total output of 1065.1 billion KW/h, with a year-on-year increase of 13.4%, which was 7.6 percentages higher than that of Q4 in 2010. Among them, the output of generated energy in March was 383 billion Yuan, ranking the second in the history. A large-scale electricity shortage emerges in the circumstance of electricity supply is steadily growing, which has closely relationship with the fast development of regional economy at the beginning of "Twelfth Five-year" Plan. In particular, the high-consumption industries bounce back rapidly.

Aiming at the coal-electricity contradiction phenomenon and with Forward’s long-term tracking and collecting market data of coal-electricity industry, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry. This report mainly focuses on analyzing the coal supply and demand trends; the development status and pricing mechanism of electricity industry; the coordination mechanism of coal-electricity supply; the causes and suggestions of coal-electricity contradiction; the coal-electricity linkage and international experiential learning; the development status and suggestions of coal-electricity integration; the cooperation and competition in upstream and downstream of coal-electricity industrial chain; as well as the leading corporations' operational conditions in coal-electricity industry. Meanwhile, with comprehensive and specific first-hand market data Forward helps you to grasp the market and development trends of coal-electricity industry, so as to win advantages from competition! This report helps coal enterprises, electricity enterprises, governmental departments and investment enterprises to precisely grasp current latest developments of the industry. Afterwards, they can make wise operating decisions and define enterprises' development directions.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations' ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center

Research Team of Coal-electricity Industry