In April, China’s raw coal production increased by 10.7%, hydropower, wind power, solar power generation increased by more than double-digit …… National Bureau of Statistics data released on May 16 reflects that China’s energy production increase to protect supply powerful and effective.
In the face of many places to resume production and work speed and the upcoming summer energy peak, the recent intensive deployment of the central level to ensure the normal supply of energy, multiple initiatives to ease the financial pressure on enterprises. Many places have also increased production and supply from coal, increase financing support and other aspects of further refinement of the deployment, for the “peak summer” to prepare.
On May 16, a special train with nearly 3,400 tons of Xinjiang Tianchi LCA coal arrived at the Yingshui Bridge cargo yard in Zhongwei City, Ningxia, marking the opening of the second circular train transportation channel for the direct supply of market LCA to mine by Ningxia Power Zhongwei Thermal Power of National Energy Group, which is of great significance to the next step of “Xinjiang coal into Ning” to complete the task of energy supply.
Ltd. is the largest coal power and heating enterprise in Ningxia, and is also responsible for the “west-east power transmission” tasks of Zhejiang and Shandong provinces, which consume large amounts of electricity. Up to now, the company’s coal stockpile has been stable for more than 15 days, providing sufficient rations for the full generation of units during peak seasons.
Since 2022, from the government work report to the Political Bureau of the CPC Central Committee meeting, the central government has always attached great importance to the work of energy resources to ensure supply and price stability.
“The increase in production to ensure supply continues to increase, the main energy products faster growth.” National Bureau of Statistics spokesman, the National Economic Comprehensive Statistics Department Director Fu Linghui said at a conference at the State Information Office on the 16th, said that energy and other basic industries to maintain growth is conducive to the normal operation of production and life order.
Data show that in April, China’s crude oil and natural gas production increased by 4% and 4.7% year-on-year, respectively, and the value added of the oil and gas extraction industry grew by 7.2%, accelerating by 1.5 percentage points from the previous month. Imports of crude oil rose 6.6% year-on-year, compared with a 14.0% decline in March.
Pay Linghui said that China’s oil and natural gas extraction ratio is high, the international energy product prices climb, will to a certain extent increase the cost of imports, to some industries to bring the import impact, increasing the cost-driven upward pressure on prices. But to see, the main body of China’s energy is coal, and China’s coal reserves are relatively abundant, while the production capacity is strong. With the gradual release of advanced coal production capacity, is conducive to curb energy price increases.
Following a record high in March, raw coal production continued its double-digit growth in April, reaching 360 million tons. The added value of coal mining and washing industry achieved a 13.2% increase, with prices rising 0.5 percentage points lower than in March.
To ensure a normal and stable supply of energy, on the one hand, to stabilize the stock, to tap the production potential of coal, coal power, oil and gas, on the one hand, to do a good job of increasing the amount of wind, light, water and other clean energy supply system construction.
450 million kilowatts, which is by 2030 China in the desert, the Gobi, desert areas planning to build large wind power photovoltaic base of the total installed capacity target. Recently, Hu Zucai, deputy director of the National Development and Reform Commission, revealed that 85 million kilowatts of projects have already started construction, and the second batch of projects are pressing ahead with preliminary work.
From the April electricity production, new energy performance is outstanding, especially solar power generation grew 24.9%, 8.1 percentage points faster than the previous month.
A series of signs show that the current stability of China’s energy supply is guaranteed, but also must be prepared for a rainy day, do a full “peak summer” preparation.
“The current energy demand is still weak due to the epidemic and other influences, and the coal supply and demand situation is improving. Later when industrial production resumes in full, there will be a significant increase in electricity consumption, coupled with the summer coal peak in July and August, there is a possibility that supply and demand will be tight.” Shi Ying, deputy director of the China Coal Transportation and Marketing Association, in an interview with the Economic Reference News, believes that there is uncertainty about the future situation.
The State Council executive meeting held on May 11 again required to ensure the normal supply of energy, and many departments have also studied and deployed to promote the work of this year’s peak summer energy supply.
For example, Chongqing recently launched the peak summer electricity and coal security special action, will highlight the good power electricity and coal balance and comprehensive scheduling. Shandong is organizing the power generation and supply enterprises to seize the current low electricity load window, orderly arrangement of equipment maintenance, to prepare for the peak summer.
The primary task is to play the main energy role of coal. “Efforts should be made to release advanced coal production capacity and establish a flexible supply mechanism.” Shi Ying suggested.
According to the plan, China will add 300 million tons of coal production capacity this year. The “Yunnan Province 2022 Energy Supply Implementation Plan” specifies that the province will strive to add more than 10 million tons of coal production capacity throughout the year. Shandong said the average daily coal production for the year to remain above 230,000 tons, and strive to reach 250,000 tons.
It is worth noting that “some coal power companies are losing money, and coal companies are not willing to increase production. Moreover, logistics in some areas are blocked by the epidemic, increasing the cost of intermediate circulation in the short term.” National Development and Reform Commission price monitoring center researcher, senior economist Liu Manping said.
The China Electricity Council report shows that in the first quarter of 2022, domestic coal prices continued to rise overall, leading to an additional increase of about 130 billion yuan in coal procurement costs year-on-year for national coal and electricity companies, with some companies experiencing unusually tight cash flow.
The price of coal is stable, the price of electricity is stable, the energy price of the “basic plate” is stable. In accordance with the requirements of coal price regulation and supervision policy, since May 1, Shanxi and many other places to clarify the coal medium and long-term trading prices and spot prices in a reasonable range. Nearly half a month, the National Development and Reform Commission continuously sounded and asked around to increase supervision and implementation efforts, 16 again stressed that the coal production and operation enterprises and the demand side to sign medium and long-term contracts, not through bundled sales and other ways disguised to raise transaction prices beyond a reasonable range.
There are more initiatives to ease the financial pressure on power companies: the amount of special refinancing to support the clean and efficient use of coal increased to 300 billion yuan; in the early allocation of renewable energy subsidies to the central power generation enterprises 50 billion yuan, through the state-owned capital management budget injection of 20 billion yuan on the basis of another 50 billion yuan of subsidies, injection of 10 billion yuan to support coal power companies to relieve distress and more power generation.
Recently, the Hunan branch of the Export-Import Bank issued loans of 1.08 billion yuan to coal-fired power companies such as Huaneng Yueyang Power Plant and Huadian Changde Power Plant to support their increased coal reserves for the summer peak and winter peak periods in 2022. Chongqing will also strengthen the financing coordination services of coal-fired power generation enterprises to ensure that the power generation enterprises coal procurement funds financing needs.
Liu Manping suggested that, in accordance with the relevant deployment requirements, attach great importance to the work of energy supply and price stability, from the “increase supply, stabilize prices, enhance the affordability of” three perspectives, advance planning, multiple measures, efforts to increase production capacity, efforts to strengthen reserves, promote import diversification, and steadily promote the transformation, and further refine the work related to price stability, to build energy supply and price stability system.