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Profile of Chinese coal power plants changing

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World Coal,

China’s fleet of coal-fired power plants will shift increasingly towards larger and cleaner plants under the ‘phase out outdated capacity’ and ‘build big, close small’ policies, according to Fitch.

In its recent China Power Sector Blue Book report, the ratings agency noted that the State Council planned to shut 20 GW of small-scale generators between 2010 and 2015, while calling for the development of nine thermal power generation centres in major coal-producing regions. Power generated in these new centres will be transmitted to consumption centres via ultra-high voltage electricity lines.

As a result, coal will remain the main source of power in China with thermal power accounting for 60% of the country’s generation mix in 2020.

A similar trend has been also been evident in the Chinese coal mining industry with the government closing small-scale operations on health and safety grounds, while pushing the development of larger mechanised mines.

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