China Power Report Q2 2015

NEW YORK, April 16, 2015 /PRNewswire/ -- BMI View: This quarter we have extended our forecasts to 2024. This notwithstanding we maintain our outlook for the power sector and we expect growth in electricity generation and consumption to slowdown in 2015. In terms of electricity generation, we expect China to continues to lead in total investment into renewable energy globally in 2015 and beyond, as the government pushes to meet the country's growing power needs, while reducing pollution We note, however, that these new power projects are generally not as scaleable or have as short a turnaround time as coal projects. As a result, greater use of these alternatives will lead to a slowdown in generation growth. On the consumption end, we believe the hangover effects of China's economic stimulus are yet to be felt and cooling credit growth is likely to reveal these effects over the coming quarters.

In terms of fuel mix, conventional thermal sources play a key role and are expected to continue to dominate electricity generation as many projects under construction or planned will use coal or gas and as Chinese efforts in prospecting and exploiting conventional oil and gas resources are set to increase. While other sources of power will play increasingly important roles, China will remain reliant on coal for its power generation over the next decade. Energy poverty is a key concern in the country and coal will remain the only realistic option for providing cheap and abundant energy for the local population over the medium term. Yet, rising coal prices are once again a key threat to the profitability of power generation companies operating in the domestic segment and Chinese utilities have placed collective pressure on the government to moderate proposed restrictions on imported coal, highlighting the difficulties China has in balancing the interests of its mining and power sectors as growth slows.
Read the full report: http://www.reportlinker.com/p0187656-summary/view-report.html

About Reportlinker
ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - instantly, in one place.

http://www.reportlinker.com


__________________________
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001

SOURCE Reportlinker

Related Links

http://www.reportlinker.com