Insight
China revives coal-power price indexation
This report is currently unavailable
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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.
Table of contents
- The indexation mechanism
- Implications
- Conclusion
- Appendix
Tables and charts
This report includes the following images and tables:
-
Chart 1: The indexation mechanismChart 2: The ramp-down arrangementChart 3: Ranges of assumed price fluctuationsChart 4: Coal-fired on-grid tariff forecastCoal-fired power on-grid tariff indexation formulas with coal prices
What's included
This report contains:
Other reports you may be interested in
Insight
Metallurgical Coal Markets - The Fortnight Flash 15 September 2026
PLV HCC edges lower as China weighs on sentiment, with Q4 outlook moderately bearish amid demand weakness and recovering domestic supply.
$1,100
Country Report
Indonesia coal supply summary
Indonesia remains swing supplier despite navigating its most significant policy reset in years
$6,750
Insight
Understanding the recent surge in Chinese thermal coal prices
QHD prices rose by RMB67/t to RMB947/t during the week of 31 August to 4 September.
$1,100
