Guizhou adopts incentive mechanism to guarantee the supply of thermal coal

According to China Coal News, Guizhou Province adopts an incentive mechanism, which rewards coal enterprises that complete the task of thermal coal supplying to 8 yuan/mt, and the city (state) that completes the task of thermal coal supplying is awarded 0.2 yuan/mt, and the power plant that completes the task of storing coal in the season is awarded 20 yuan/mt. Rewarding 30-50 yuan/mt for high calorific value coal purchased by power plants and 20 yuan/mt for emergency coal storage.
 
Guizhou Province supplied 56.65 million tons of thermal coal in the first eleven months of 2018. It is estimated that 63 million tons of coal will be supplied throughout the year (excluding coal purchased outside the province), up 7.95 million tons year on year, of which private coal mines supplied 45 million tons of coal and it accounts for 71.4% of the total coal supplying. The thermal power generation capacity was 93.6 billion kWh in the first eleven months, up 7.1% year on year.
 
It is understood that the total demand for thermal coal in Guizhou Province is expected to be 74.6 million tons in 2019. The contract price of thermal coal in the coordinated power plants will be 7-9 cent/Kal. The specific price will continue to be implemented the contract price signed by various coal and power enterprises in Guizhou Province in 2018. The contract price of thermal coal for non-coordinated power plants will be determined by both parties of coal and electricity in accordance with the principle of “guarantee quantity but does not guarantee price”.