China's thermal power plants may suffer more loss this year as rising coal prices on global markets will drive up domestic coal prices, said a report released Friday by the China Energy Research Society (CERS).
"The economic recovery around the world, especially in emerging economies, will boost coal demand and push up coal prices, and cause China's coal prices to hike," said the report.
The CERS forecast that the domestic prices of coal for power generation would rise by around 30 yuan (about 4.5 U.S. dollars) per tonne in comparison with last year, slashing the profitability of thermal power producers.
Yun Gongmin, general manager of China Huadian Group, one of the country's five largest power generators, said they were facing great pressure from rising coal prices and environmental protection.
China's thermal power plants suffered a total loss of 32.9 billion yuan (5 billion U.S. dollars) in 2010, according to the China Electricity Council, a consolidated organization of China's power businesses at the approval of the central government.
"The economic recovery around the world, especially in emerging economies, will boost coal demand and push up coal prices, and cause China's coal prices to hike," said the report.
The CERS forecast that the domestic prices of coal for power generation would rise by around 30 yuan (about 4.5 U.S. dollars) per tonne in comparison with last year, slashing the profitability of thermal power producers.
Yun Gongmin, general manager of China Huadian Group, one of the country's five largest power generators, said they were facing great pressure from rising coal prices and environmental protection.
China's thermal power plants suffered a total loss of 32.9 billion yuan (5 billion U.S. dollars) in 2010, according to the China Electricity Council, a consolidated organization of China's power businesses at the approval of the central government.
