China moves to guarantee energy supply by increasing coal production capacity

China plans to increase its coal capacity by 300 million tons this year and improve coal production review and approval mechanism, officials said at a meeting on Wednesday, in a move to ensure energy supplies after a power crunch last year and also to bring coal prices down, officials said.

Energy experts said that China's energy supplies are unlikely to face problems like last year, as market demand has edged down following a recent COVID-19 resurgence and the government has attached more importance to tackling the issue after learning a lesson in 2021.

According to the State Council meeting presided by Premier Li Keqiang on Wednesday, China should strengthen energy supplies and push relevant energy projects that have mature conditions and fit the nation's development needs, China's national broadcaster CCTV reported.

In particular, the State Council meeting said that China should support coal as a main energy source by improving review and approval mechanism on coal production and project construction, as well as releasing advanced capacity.

China plans to increase coal capacity by about 300 million tons this year, the meeting said. It also noted that China should push for transformation of coal-fired power generators of more than 220 million kilowatts.

Besides coal, China would continue to develop nuclear power in an orderly way, the meeting said. In particular, the country approved three new nuclear power unit projects that have been included into the national plan, officials noted.

According to a report by yicai.com, the projects involve six nuclear power units using third-generation nuclear power technology. One such unit costs about 20 billion yuan ($3.12 billion).

The meeting also noted that China should push for transformation of coal-fired power generators of more than 220 million kilowatts. China would continue to develop nuclear power in an orderly way.

Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, said that officials are being more cautious about energy supplies after last year's power shortage, and they are ready to take precautions to avoid a repetition.

"Supplies this year should be adequate, as market demand is slowing down amid rising outside pressure, while coal capacity is increasing," Lin told the Global Times.

He said that officials aim to guide down coal prices, which are still relatively high.

As to the transformation of coal-fired power units, Lin said that China is moving to establish units that can start or stop operation more flexibly to adapt to the trend of applying wind power in large amounts.

"As wind power is not as stable as coal, the two sources will coexist for a long time, with coal-fired power generators remaining as a major source, supplemented with other clean energy sources," Lin said.