Advertisement

Update | China’s red-hot coal power sector is fast cooling with losses on the horizon, warns Greenpeace study

Coal-fired power plants may start losing money from next year amid excess capacity, electricity pricing reforms and stricter environmental laws

Reading Time:2 minutes
Why you can trust SCMP
Smoke rises from a power plant near Hengshui in China's northern Hebei province as the sun sets in the background. Photo: AFP

China’s coal-fired power plants – many of them state-owned – may start losing money from next year because of overcapacity, ­elec­tricity pricing reforms and tighter environmental constraints, ­according to a Greenpeace study.

Advertisement

The warning comes as the country’s top economic planner said on Monday that the government would curb power output from burning coal over the next three years to reduce excess ­capacity and fight air pollution.

The National Development and Reform Commission also said it would set up a risk-assessment system to measure power production efficiency.

Yuan Jiahai, a professor at North China Electric Power University who led the Greenpeace study, said the past year’s investment boom in coal-fired power plants had been based on expectations of lucrative returns due to low coal prices and overpriced on-grid tariffs.

Advertisement
Advertisement