Oct 15, 2021
Financial Sharing What is the meaning behind the most stringent electricity curtailment order?
Financial Sharing What is the meaning behind the most stringent electricity curtailment order? Electricity prices did not rise, but coal prices soared. Due to China's restrictions on Australian coal imports, China imported only 780,000 tons of coal from Australia in the first half of this year, a year-on-year decrease of 98.6%, basically not importing coal from Australia. After banning the import of Australian coal, China increased its imports of coal from the United States, Canada, Russia, Colombia, and the Philippines. However, the cost of importing these coals is higher than that of Australian coal. Due to its poor quality and deep burial, domestic coal has a much higher mining cost than Australian open-pit coal. In the past, one of the key reasons why China imported a large amount of coal from Australia was that Australian coal was cheaper than domestic coal. And 70% of China's electricity comes from coal power. When the cost of coal is high, the cost of electricity rises rapidly. However, if electricity prices cannot rise, coal power plants can only generate power at a loss. On the other hand, some companies have curtailed power, some are due to insufficient power supply and relatively high power demand, and some are related to the "dual control" indicator. From the perspective of the macro environment, the country's carbon neutrality and carbon peaking policies are regulating energy-consuming enterprises to promote market transformation. It can be said that the strict "dual control" policy is an inevitable result of market development. Some power and production restrictions introduced by local governments are an integral part of the local governments' market regulation according to the situation, and they are a policy-oriented behavior. Because carbon emissions are limited, our total energy use is limited, so when we reach a certain point, we must make some choices. Residential electricity consumption must be guaranteed, and residential electricity consumption only accounts for 13.6% of the total electricity consumption, and the tertiary industry electricity consumption is only 13.4%, so that only industrial electricity consumption accounts for 71.1% of the electricity consumption. Therefore, it is necessary to limit the power supply to the manufacturing industry. So the problem is that China is a big manufacturing country, and the whole country is revolving around manufacturing. In the manufacturing industry, not only China's GDP, but also the jobs of countless people. For a so-called carbon peak, just stopped like this? Isn't this caught in the trap of Europeans and Americans? Things, of course, are not so simple. Every policy in China is formulated after repeated scrutiny by the elites, and only do things that are beneficial to China. We did agree on a carbon peak with Europe and the United States, but that was because the terms were beneficial to us, at least for mutual benefit and win-win. We can never unilaterally wear ourselves to me...
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