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Zhejiang offers more support for gas-fired power plants

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Report summary

Along with weaker power demand growth, poor generation economics are at the heart of many challenges to gas-fired power in China. To improve this, Zhejiang province has announced a two-tier power tariff structure that includes both a capacity charge and MWh-based prices. However, while the new pricing structure will improve the economics of CCGTs operating at peak load, it will not necessarily boost gas demand.  

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