The day before yesterday, the State Council released new guidance aimed at deepening the market-oriented reform of coal-fired power. Among the key points highlighted by industry experts, the proposal to phase out the dual-track pricing system for coal was particularly notable. This move signals a significant step toward aligning coal and electricity prices more closely. The long-awaited coal-to-power price linkage mechanism is expected to be fully implemented next year, offering much-needed stability for thermal power companies.
In Yunnan, the thermal power sector has been struggling due to various challenges, including fluctuating coal prices and increased hydropower generation. With this new policy, there's hope that the region’s thermal power companies will see improved financial performance and operational efficiency.
According to the State Council’s guidance published on December 25, the coal price linkage mechanism will be refined. The new rules state that if coal prices fluctuate by more than 5%, the on-grid tariff will be adjusted accordingly. Additionally, the share of coal price volatility borne by power companies will be reduced from 30% to 10%, easing some of the financial pressure on them.
Experts suggest that while the current coal prices are relatively stable, this is an ideal time to push forward with the coal price linkage reform. However, they emphasize that the "Guiding Opinion" lacks specific implementation details, and further action is needed to ensure a more effective and practical mechanism.
Yunnan’s thermal power companies have faced significant losses in recent months. According to reports, from January to August this year, thermal power production dropped sharply, with units operating only 2,634 hours on average—683 hours less than the previous year. Nine companies reported losses totaling 1.747 billion yuan, up from 1.304 billion yuan the previous year. Many rely heavily on short-term loans, leading to severe cash flow issues.
The main causes of these losses include mismatched on-grid tariffs and coal prices, low equipment utilization rates, delayed subsidies, and rising environmental compliance costs. Despite these challenges, thermal power remains a crucial part of Yunnan’s energy mix, accounting for 32.7% of total installed capacity.
Industry analysts believe that the new coal price linkage mechanism could significantly improve the situation for thermal power plants. By better aligning coal and electricity prices, it may help reduce losses and stabilize operations.
This reform also marks a major shift in the coal market, breaking down the last remnants of administrative control. As coal and power companies now negotiate prices independently, both sectors stand to benefit from greater market flexibility and transparency.
While the immediate impact on residential electricity prices is expected to be minimal, the reform is seen as a positive development for the broader energy sector. Experts predict that electricity prices will remain stable in 2013, and with potential coal price declines, future adjustments could lead to lower tariffs and reduced costs for consumers and businesses alike.
Magnetic Valve
A magnetic valve is a type of valve that uses an electromagnetic field to control the flow of fluids or gases. It consists of a coil of wire that generates a magnetic field when an electric current flows through it. This magnetic field interacts with a ferromagnetic core, which moves a plunger or armature to open or close the valve. Magnetic valves are commonly used in industrial applications, such as in water treatment plants, chemical processing plants, and HVAC systems. They are also used in medical equipment, such as oxygen concentrators and anesthesia machines. Magnetic valves are known for their high reliability, fast response times, and low power consumption.
Magnetic Valve,Magnetic Gas Valve,Electro Magnetic Valve,Magnetic Latching Solenoid Valve
WUXI KVC-VALVE , https://www.wxkaiweixi.com