China power situation building to crisis

China''s appetite for energy is huge, but smaller power producers are squeezed between the rising cost of coal and protected end-user tariffs.

As Shenhua Coal, China's largest coal producer, gears up for a $1.5 billion international listing , smaller domestic players are taking the opportunity created by a renewed focus on the sector to voice their complaints.

They claim a two-tier pricing system favouring large coal producers such as Shenhua, consumers, and a handful of publicly listed, well-connected IPPs such as Huaneng, Datang and Huadian Power, is creating a skewed market.

While the smaller power producers have...

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