Initiatives to the Coal-Fired Power Generation Enterprises

To All the Coal-Fired Power Generation Enterprises:

The year 2021 marked the 100th Anniversary of the founding of the Communist Party of China and it was also the first year of the "14th-Five-Year Plan" period. China's national economy continued to recover from the impact of the epidemic, and the power demand of the whole society grew more than expected. The coal-fired power supplied 75% of the peak load power demand of the whole society with less than 50% installed capacity in the total.

Since last year, the coal supply for power generation had been tight. The decline in coal inventories in power plants and the soaring coal prices in the market weakened the role of coal-fired power as a backstop and affected the security of the power supply. Under the strong leadership of the Party Central Committee and the State Council, all coal-fired power generation enterprises tried their best to overcome the difficulties and ensured the power supply at all costs.

Recently, the tight coal supply for power generation has eased, and the market price of coal for power generation also dropped significantly. The coal inventories in power plants have far exceeded the level of the same period last year. The Spring Festival and the Winter Olympics are approaching. In order to ensure power supply for the winter peak demand and the country’s major events, we hereby proposed the following initiatives to all coal-fired power generation enterprises:

1. Continue to guarantee the coal supply for power generation. 

The coal-fired power generation enterprises should undertake social responsibilities and ensure the coal supply for power generation. Moreover, the coal-fired power generation enterprises should strengthen the coordination and communication among the parties of coal production, transportation and demand, facilitate the medium and long-term coal supply contracts performance for the smooth connection of the cross-year delivery. It is particularly important to ensure a smooth transition in the coal supply and transportation in January.

For difficult situations such as the extreme weather, the coal-fired power generation enterprises need to prepare various emergency plans in advance to improve their emergency response capabilities to cope with the unforeseen risks and challenges.

2. Maintain the stability of the coal market. 

The coal-fired power generation enterprises should strictly follow the requirements of relevant government departments to purchase coal for power generation, and actively facilitate the signing of medium and long-term coal purchasing contracts in 2022. The coal-fired power generation enterprises should also strictly implement the medium- and long-term coal purchasing contracts and the pricing mechanism of the "benchmark plus floating price”. The coal-fired power industry should strengthen the integrity construction and industry self-discipline of the coal market for power generation and to guide the market price of coal to return to a reasonable range, so that the coal market could be operated in a standardized and orderly manner.

3. Make every effort to ensure the safety of the power production. 

The coal-fired power generation enterprises should strictly implement the safety production responsibility codes. In addition to strengthening the operation, maintenance and monitoring management of power generation equipment, the coal-fired power generation enterprises should also increase the the daily inspection and management of safety hazards to ensure the safe power production and the stable power supply. 

‘Half a mile is worth a mile‘. All the power generation enterprises are responsible for the safe supply of electricity and heat. The coal-fired power generation enterprises should continue to unite the upstream and downstream industries such as coal and transportation, and assume the responsibility of ensuring the power supply for the industrial safety production and the electricity for people's livelihood.

(Proposed by China Electricity Council (CEC) on December 31, 2021)