Coal companies are taking multiple measures to ensure an adequate supply of thermal coal to meet the peak demand for summer coal. With many parts of the country experiencing high temperatures and heatwaves, power generation companies are operating at full capacity to ensure a stable power supply.
According to the latest data, China Huadian Group’s coal consumption from July 1st to 7th reached 4.75 million tons, marking a 13.5% increase compared to the same period last year. Additionally, power generation and the operating capacity of thermal power units have reached record levels, with an increase of 13.5% and 5.15% year-on-year, respectively.
To meet the high demand for power, power generation enterprises are maximizing their output, while coal companies are making every effort to ensure an uninterrupted supply of thermal coal. The National Energy Group has maintained a peak coal production level of 50 million tons for 21 consecutive months, and efforts are being made by China Coal Group to expedite procedures for increasing production capacity. This has led to power plant coal storage reaching a new high in recent years.
Aside from increasing production capacity, transportation is also playing a key role in ensuring coal supply. Most of the country’s major power plants are located along the south coast, while coal production for power generation is concentrated in the north. To address this logistical challenge, transportation routes have been optimized. In 2023, the Haoji Railway, Jitong Railway, and Wari Railway, which are the country’s main railway transportation lines, will increase their capacity, facilitating smoother coal transportation and supporting the overall coal supply.
The person in charge of the port stated that compared to previous years, power plants no longer face the challenge of searching for coal during prolonged periods of high temperatures. The upstream coal supply in 2023 is expected to be sufficient, ensuring that downstream users can be supplied as long as there is demand.
Data provided by the China Coal Industry Association revealed that in the first five months of 2023, coal enterprises above designated size across the country produced a cumulative output of 1.91 billion tons of raw coal, reflecting a 4.8% year-on-year increase. Furthermore, coal imports have increased significantly, with a total of 182 million tons imported, marking an 89.6% year-on-year increase. The national railway coal transportation volume has also seen a year-on-year increase of 3.2%, reaching 1.152 billion tons, while coal used for power generation has increased by 12% to 965 million tons.
With power generation companies committed to meeting peak demand and coal companies ensuring a steady supply of thermal coal, the country is well poised to maintain a reliable power supply during the summer peak.