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4 Pages

China revives coal-power price indexation


China revives coal-power price indexation

Report summary

A key area of China's power pricing reforms is addressing the mismatch between the liberalised coal market and regulated power prices. China introduced a coal-power price indexation mechanism as early as 2004, but in practice it remains largely inactive. The flawed design and weak implementation of the indexation has consequently hurt both power generators and coal miners. A new arrangement was therefore badly needed, especially in 2016, the year of reform in China. In this Insight we examine the latest revision of the indexation, explore its implications and forecast the trend of coal-fired on-grid tariff changes.

What's included?

This report includes 1 file(s)

  • China revamps the coal-power price indexation mechanism PDF - 274.14 KB 4 Pages, 0 Tables, 5 Figures

Description

This Power Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues within the power industry, this report gives you an expert opinion and analysis to help inform your decision making.

Wood Mackenzie's detailed analysis and reliable market forecasts provide a strong reference, enabling a quick and concise description about the relationship between this event and its implications.

Underpinned by our extensive gas, coal and oil markets research, Wood Mackenzie's detailed analysis and reliable market forecasts provide a reliable foundation for investments and corporate planning. We help you understand key regulatory and economic drivers, and emerging industry tends in the power industry.

  • The indexation mechanism
  • Implications
  • Conclusion
  • Appendix

In this report there are 5 tables or charts, including:

  • The indexation mechanism
    • Chart 1: The indexation mechanism
    • Chart 2: The ramp-down arrangement
    • Chart 3: Ranges of assumed price fluctuations
    • Chart 4: Coal-fired on-grid tariff forecast
  • Implications
  • Conclusion
  • Appendix
    • Coal-fired power on-grid tariff indexation formulas with coal prices
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