first_img FacebookTwitterLinkedInEmailPrint分享Bloomberg:China is pursuing a three-year pilot program, led by five of its biggest utilities, to integrate and cut some coal-fired power capacity to help the debt-saddled industry, state media reported. The pilot, which runs through 2021, will seek to consolidate coal-power assets within five northwestern regions and reduce their capacity by up to one-third, according to Shanghai Securities News, citing sources it didn’t identify.The state-owned Assets Supervision & Administration Commission, which oversees the utilities, did not immediately respond to a faxed request for comment. Calls went unanswered to the media offices of the five companies — China Huaneng Group Co., China Datang Corp., China Huadian Corp., State Power Investment Corp. and China Energy Investment Corp.The five firms had a combined 520 gigawatts of coal-fired capacity at the end of last year, according to the Shanghai Securities News report, adding that those coal power units had total combined liabilities of 1.1 trillion yuan ($156 billion) and assets worth 1.5 trillion. China’s coal plants are distributed across 30 provinces and territories, of which 15 saw losses in the coal and power business last year, according to the report.Coal plants nationwide ran at only 49% of their capacity during the third quarter, BloombergNEF analyst Hanyang Wei said in a report Tuesday, citing slower overall demand growth as the trade war with the U.S. impacts the economy, as well as competition from nuclear and hydropower.The plan to retire capacity is expected to boost profitability of some power companies, China International Capital Corp. analyst Liu Jiani said in a note. The entire industry could benefit if the program is extended to other provinces, Liu said.Under the trial program, each of the five state utilities will be tasked with leading asset consolidation and capacity reductions in one of the five provinces or territories: Huaneng in Gansu; Datang in Shaanxi; Huadian in Xinjiang; SPIC in Qinghai; and CEIC in Ningxia, the report said. The program could be expanded in the future, it added.More: China plans coal-power revamp to help ailing generators China targets uneconomic coal-fired capacity in three-year trial programlast_img

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