"Iron hand" environmental protection guides the natural gas power generation to welcome good

2025-09-08 06:11:45
The National Development and Reform Commission recently announced adjustments to on-grid electricity tariffs, reducing coal-fired power generation rates in 27 provinces while increasing natural gas power tariffs in eight regions, including Shanghai, Jiangsu, and Guangdong. This move aims to support environmental protection efforts, reduce reliance on coal, and promote the use of cleaner energy sources. According to reports, the average on-grid tariff for domestic natural gas power plants is currently around 0.78 yuan per kWh. Following the recent adjustment, this is expected to rise to 0.82 yuan per kWh. Lin Boqiang, a professor at Xiamen University's China Energy Economic Research Center, explained that the price changes are intended to encourage more sustainable energy practices and support the transition toward renewable and cleaner energy sources. Despite these policy shifts, many gas-fired power plants in China continue to operate at a loss due to high fuel costs and supply shortages. The lack of stable gas supplies has led to frequent operational restrictions, making it difficult for companies to maintain profitability. Some projects, like the Jiangsu Guosen Huai'an Gas Power Generation Company, have been operating at a loss since their launch in 2012, with limited access to gas and unattractive on-grid tariffs. In Guangdong, another large-scale gas plant faces similar challenges. Despite having a long-term contract with an Australian supplier, the company has experienced supply cuts due to rising international gas prices and logistical issues. Additionally, the loss of carbon credit revenue after 2010 has further strained its financial position. Analysts suggest that while the government is pushing for more natural gas power plants as part of its environmental strategy, the current pricing structure does not fully cover operational costs. Ma Ji, an analyst from Treasure Island Gas Industry, noted that gas-fired power generation in China still faces high costs—two to three times that of coal-fired power. He also warned that slow progress in natural gas price reforms could continue to pressure power companies. With the push for "coal-to-gas" initiatives and stricter environmental regulations, the demand for natural gas power is expected to grow. However, without proper cost recovery mechanisms and stable gas supplies, the industry may struggle to achieve long-term sustainability. Experts agree that balancing environmental goals with economic feasibility will be key to the future of natural gas power in China.

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LED Round Downlight Manufacturer and Indoor LED Lighting Factory in China

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Jiangmen Synno Lighting Co., Ltd. , https://www.synnoled.com