The National Development and Reform Commission (NDRC) and National Energy Administration (NEA) on Monday jointly released a guideline for strengthening and normalizing supervision and administration of coal-fired captive power plants.
The guideline clarifies that China would forbid construction of new coal-fired captive power plants in Beijing-Tianjin-Hebei region, Yangtze River Delta, and Pearl River Delta. Meanwhile, except for heat-power co-generation projects, areas with excessive installed capacity and low thermal power operating hours are not allowed to build new captive coal-fired power plants.
Besides, the guideline requires captive coal-fired power plants to strictly follow China's thermal power industrial policies and standards for energy efficiency, water efficiency, environmental protection, security and quality.
Currently, the captive power plants in China are mostly built and owned by energy-intensive enterprises to generate electricity for their own use in order to reduce power consumption cost.
But construction of new captive power plant sees unnecessary on foreseeable electricity price cut in future on coal price decline and stricter environmental protection standards in China.
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