In order to give full play to the leading role in stabilizing the market and stabilize coal prices within a reasonable range, the State Council executive meeting held on April 20 determined several measures to ensure and increase energy supply. The meeting pointed out that it is necessary to respond to external challenges based on China's national conditions, seize the key points, strengthen energy supply, and take precautions to promote the construction of energy projects that are mature and needed for development.

First, we must give full play to the role of coal as the main energy source. Optimize the approval policies for coal production and project construction, implement the local responsibility for stabilizing production and ensuring supply, and fully release advanced production capacity. Through the increase of production capacity, new production, etc., the new production capacity will be 300 million tons in 2022. Use market-oriented and legalized methods to guide coal prices to run within a reasonable range.

Second, it is necessary to promote the transformation of coal-fired power units and improve the efficiency of energy use. The annual transformation scale exceeds 220 million kilowatts.

The third is to develop nuclear power in an orderly manner under the premise of strict supervision and ensuring absolute safety. Approved the three new nuclear power unit projects that have been comprehensively assessed and reviewed and have been incorporated into the national plan.

Lin Boqiang, dean of the China Energy Policy Research Institute of Xiamen University, told reporters that this meeting reiterated the importance of ensuring energy supply. The main background is that there was a shortage of power supply in some parts of China last year, and the second is the current conflict between Russia and Ukraine. International energy prices soared. The meeting mainly made advance arrangements from coal and other aspects, which is also the "ballast stone" for China's energy supply.

The two quantitative goals mentioned at the meeting were of interest. The first is "300 million tons of new (coal) production capacity in 2022", and the second is "the annual transformation (coal power unit) scale exceeds 220 million kilowatts".

This was mentioned in the "Notice on Establishing a Special Work Class to Promote the Increase in Coal Production and Supply" issued by the National Development and Reform Commission to relevant provinces, autonomous regions and central energy enterprises. According to the target of the notice, "the main coal-producing provinces and regions and central enterprises will fully tap the potential to expand capacity and increase supply, and release more than 300 million tons of production capacity per year within this year, and the daily output will reach more than 12.6 million tons."

Among them, another 300 million tons/year of production capacity will be released during the year, including the new production capacity (including the entry into joint trial operation) of 150 million tons/year, as well as new production capacity through verification, resumption of production in suspended coal mines, and increase in open-pit mine production. The production capacity is 150 million tons/year.

Many people in the industry believe that the above goals have clearly released relatively loose production capacity, but there are still many difficulties to achieve them. First, it is affected by unstable factors such as the epidemic and weather. Second, some production capacity has been increased in the second half of last year, and the remaining space is limited. Third, regulations such as safety supervision and environmental protection have become stricter.

In addition to increasing coal production, strengthening the transformation of coal-fired power units has also been put on the agenda. Lin Boqiang said that this will be a long-term key work in China, which will not only adapt to the new power system dominated by new energy, improve power generation efficiency, but also help reduce carbon emissions.

At present, the core of the transformation of China's coal-fired power units is the "three-reform linkage" around coal-saving and consumption-reducing transformation, heating transformation and flexibility transformation.

The "Notice on Carrying out the Transformation and Upgrading of National Coal Power Units" issued by the National Development and Reform Commission and the National Energy Administration at the end of 2021 shows that during the "14th Five-Year Plan" period, the scale of coal-saving and consumption-reducing transformation and transformation will not be less than 350 million kilowatts, and the heating transformation will not be less than 350 million kilowatts. The scale strives to reach 50 million kilowatts. The flexibility of existing coal-fired power units should be improved to the fullest. During the "14th Five-Year Plan" period, the flexible manufacturing scale of coal-fired power units will be 150 million kilowatts. However, according to incomplete statistics from reporters, the specific goals for the transformation in 2022 have not been announced before.

The meeting also proposed to use market-oriented and legalized methods to guide coal prices to run within a reasonable range.

From May 1, the "Notice on Further Improving the Coal Market Price Formation Mechanism" issued by the National Development and Reform Commission will be officially implemented. According to the notice, the medium and long-term transaction price of Qinhuangdao Port’s water coal (5,500 kcal) is a reasonable range of 570-770 yuan per ton (tax included).

Wan Jinsong, director of the Price Department of the National Development and Reform Commission, said at a previous press conference that when the coal price is within a reasonable range, the market mechanism should be fully utilized, and market entities should be free to trade independently to form prices, and government supervision should be "in place and not offside". , shall not conduct improper administrative intervention. Once the price exceeds the reasonable range, regulation and supervision measures will be taken immediately to promote the return of coal price to the reasonable range.

The latest issue of the China Coastal Thermal Coal Purchase Price Index (CECI Coastal Index) shows that the comprehensive purchase price of 5,500kcal coastal thermal coal is 914 yuan/ton, which is a certain distance from the reasonable range.

On April 18, the National Development and Reform Commission issued a document stating that recently, the Price Department held a special meeting to study and clarify the identification standards for illegal acts of price fraud in the coal field. In the next step, the National Development and Reform Commission (NDRC) will, based on opinions from all quarters, promptly improve the relevant regulations on the identification standards for illegal acts of price fraud in the coal sector, urge relevant departments to intensify law enforcement inspections, effectively maintain the price order of the coal market, and better guarantee National energy security.

Lu Yanchun, director of the Price Monitoring Center of the National Development and Reform Commission, pointed out in an article that it is necessary to firmly grasp the "bull nose" of stabilizing coal prices, hedge the input pressure caused by rising international energy, and then stabilize electricity prices and stabilize the "basic price" of energy prices. support. Editor / Xu Shengpeng