Premier Li Keqiang of China State Council chaired an executive meeting of the State Council on October 8 to further deploy the supply of electricity and coal this winter and next spring to ensure the basic livelihood of the people and the stable operation of the economy.
The meeting pointed out that since the beginning of this year, energy prices in the international market have risen sharply, and the supply and demand of domestic electricity and coal have remained tight. Various factors have led to power cuts in some places recently, which has had an impact on the normal economic operation and residents’ lives. In accordance with the deployment of the CPC Central Committee and the State Council, the relevant parties have taken a series of measures to strengthen the guarantee of energy supply. In view of the still great pressure on the supply and demand of electricity and coal this winter and next spring, the meeting stressed that ensuring energy security and the stability of the supply chain are important contents of the “Six Guarantees”. A full play should be given to the role of the coal, electricity, oil and gas transportation guarantee mechanism, and effectively use market-oriented means and reform measures to ensure the supply of electricity and coal. Major coal producing provinces and key coal enterprises should implement the task of increasing production and supply as required. The central power generation enterprises shall ensure that their thermal power units shall be used up. Power grid enterprises should strengthen power operation dispatching and safety management. Those who fail to implement the responsibility of ensuring energy supply should be seriously held accountable.
Important statements of the meeting:
- Ensuring energy security and supply chain stability is an important part of the “Six Guarantees”. A full play should be given to the role of coal, electricity, oil and gas transportation guarantee mechanism, and effectively use market-oriented means and reform measures to ensure the supply of electricity and coal.
- Priority to people’s livelihood should be given and ensure that coal is adequate for power generation and heating, especially in winter in Northeast China.
- On the premise of ensuring safe production, encourage the coal mines with potential to increase production and release production capacity as soon as possible, accelerate the production starting time of the approved and basically completed open-pit coal mines, and promote the coal mines that stop production for rectification to rectify in accordance with laws and regulations and resume production as soon as possible.
- In view of the difficulties faced by coal-fired power companies, government will implement phased tax deferment policies, guide and encourage financial institutions to provide reasonable financing for coal purchase.
- On the premise of maintaining the stability of electricity prices for residents, agriculture and public welfare, the fluctuation range of electricity prices shall be adjusted from no more than 10% and 15% respectively to no more than 20% in principle. For high energy consuming industries, the price can be formed without the restriction of floating up by 20%.
- Accelerate the construction of large-scale wind power and photovoltaic projects in desert areas and accelerate the construction of emergency standby and peak shaving power supply.
- Promote new renewable energy consumption to be excluded from the total energy consumption within a certain period of time.
- Strictly implement the territorial management responsibility and orderly power consumption management. The central state-owned power generation companies should ensure that their thermal power units are in full production, correct the “clean cut” shutdown and production restriction or “Event” carbon reduction actions in some regions.
Source: China Government Network