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China to inject $1.5 billion to help state coal-fired power firms

13 May 2022

 

China has pledged to inject 10 billion yuan ($1.5 billion) into its coal-fired power firms to provide financial relief and support their efforts to guarantee power supplies, state media said late on Wednesday, citing a cabinet meeting.

The new funding was part of a wider package of policies announced by the State Council to try to shore up China’s economy and support employment. It included 50 billion yuan in renewable energy subsidies allocated to central government backed power firms.

The cabinet said China would “optimise” its policies to ensure that its advanced coal-fired power capacity would be fully utilised, adding that it would not permit any power rationing.

Chronic power shortages led to widespread industrial disruption last year, with generators unable to pass soaring coal costs onto customers.

Though many plants have struggled to make a profit, China started building 33 gigawatts of new coal-fired power generation capacity last year, the most since 2016.

China has pledged to start cutting coal consumption from 2026, but researchers estimate that another 150 gigawatts of coal-fired capacity could go into operation over 2021-2025.
Source: Reuters