CURRENT China Tries New Anti-Coal Tack to Encourage Renewables

摘要

China has come up with a radical proposal to chip away at coal's role as a baseload generation fuel and encourage renewables as part of efforts to clamp down on pollution and deal with thermal power overcapacity. Under a pilot scheme announced last month, the National Energy Administration said coal plants can volunteer to give up baseload rights in return for dispatch priority and being allowed to generate more electricity. The proposal is expected to face resistance from coal plants, but could in the long run be the answer to tackling overcapacity and ramping up renewables, says Penny Chen, an associate director of Fitch Ratings.