Coal prices go down and power up

The momentum of the power generating units of the five major power generation groups is unusually fierce, and the recent generation of power generation has reached record highs. Some analysts believe that the decline in coal prices, coupled with the rumors of reduction in electricity prices, power companies will naturally not miss this opportunity to expand profitability.

This reporter learned that Datang International's Zhangjiakou Power Plant achieved a monthly electricity consumption of 1.402 billion kWh in April, a single monthly high in the past five years; Huaneng Dongfang Power Plant successively refreshed the historical maximum single-day power generation record after May 9th; State Power Lanzhou As of April 30, the thermal power company has completed a total of 464 million kilowatt-hours of power generation, completing 41% of the annual planned power generation target mission.

Zhong Yu, a coal analyst at Guanyu, believes that the current low coal price is the main reason why power plants increase their power generation. "The cost of fuel accounts for more than 70% of the cost of power generation. Now that coal prices are lower, companies will naturally not give up this rare opportunity to expand profits. In addition, the recent rumors that on-grid tariffs should be lowered also increase the tension of power companies." According to reports, China will reduce the on-grid tariff of coal-fired thermal power plants by RMB0.008 per kilowatt-hour in the third quarter of this year to supplement domestic renewable energy surcharges. "Obviously, power companies are certainly looking forward to being able to send more electricity when the electricity price is high."

In addition, there is news recently that the state is seeking comments on companies that limit the import of coal with low calorific value. The matter has been strongly opposed by the five major power groups, and they believe this is not conducive to the reform of the coal market.