• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 8 hours The United States produced more crude oil than any nation, at any time.
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 6 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 1 day Bankruptcy in the Industry
Standard Chartered Says Peak Oil Demand Is Not Imminent

Standard Chartered Says Peak Oil Demand Is Not Imminent

Standard Chartered has predicted global…

Surging Energy Prices Could Derail China's Coal Policies

The rally in energy commodities following Russia's invasion of Ukraine could derail Chinese plans for using the guiding of the price of coal, which is still a major source of power generation in the country.

The recent policy of Chinese authorities to establish a more direct correlation between coal prices and electricity rates could be upset by the jump in energy commodity prices, including coal prices. This, in turn, could slow China's economic growth, Bloomberg reported on Friday.

On Thursday, Australian thermal coal, a benchmark for the fuel used as an electricity feedstock, hit a record-high, as commodity markets around the world scrambled to assess the impact of the Russian attack on Ukraine on supply.

Also on Thursday, China's top economic planner, the National Development and Reform Commission (NDRC), issued a "reasonable range" for coal prices in the country, "moving to improve the price formation mechanism in the coal market to guide price movements within a reasonable range as the country seeks to ensure stable energy supplies."

"Proposing a reasonable range is not to adopt government pricing for coal, but to establish a range regulation mechanism on the basis of market-formed prices," NDRC official Wan Jinsong said, quoted by Chinese news outlet Xinhua.

Despite the "reasonable range" of prices of coal in China, the country is not isolated from global surges in energy commodity prices, even if its coal industry is huge.

The energy-intensive industries could potentially face unlimited power rate hikes if commodity prices soar, which could slow down economic growth.

Last week, China said it would help run its coal-fired power plants at full capacity in a bid to ensure energy security, despite the climate goals of the world's largest polluter. The Chinese authorities will increase coal supply, and coal-fired power plants will be supported in running at full capacity and generating more electricity to meet the electricity needs for production and residential consumption.


By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News