| ID | 150058 |
| Title Proper | Coal power overcapacity and investment bubble in China during 2015–2020 |
| Language | ENG |
| Author | Yuan, Jiahai ; Li, Peng ; Wang, Yang ; Dong, Liansai |
| Summary / Abstract (Note) | Electricity consumption growth in China has experienced radical adjustment from high speed to medium speed with the advent of new economy normal. However, the investment enthusiasm on coal power remains unabated and leads to continuous operation efficiency deterioration in recent years. In this paper, we quantify the rational capacity and potential investment of coal power in China during the 13th FYP period (2016–2020). By employing power planning model and fully considering the power sector's contribution in the 15% non-fossil primary energy supply target by 2020, we estimate that the reasonable capacity addition space of coal power ranges between 50 GW and 100 GW, depending on the expected range of demand growth. We find that if all the coal power projects submitted for Environmental Impact Assessment (EIA) approval were put into operation in 2020, capacity excess would reach 200 GW. Such huge overcapacity will bring forth disastrous consequences, including enormous investment waste, poor economic performance of generators and more importantly, delay of low-carbon energy transition. Finally, policy recommendations are proposed to address this issue. |
| `In' analytical Note | Energy Policy Vol. 97, No.97; Oct 2016: p.136–144 |
| Journal Source | Energy Policy 2016-10 97, 97 |
| Key Words | China ; Power Planning ; Coal Power ; Capacity Investment |