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Overall review of the overcapacity situation of China’s thermal power industry: Status quo, policy analysis and suggestions

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  • Ming, Zeng
  • Ping, Zhang
  • Shunkun, Yu
  • Hui, Liu

Abstract

China's thermal power industry has gone through the phases of rapid development in the last decade. But the excessive enthusiasm of thermal power investment is making this industry overcapacity. The unbalanced demand-supply relationship in electric power market greatly affects the economic benefit of most thermal power plants. In this paper, we give an overall review of the overcapacity situation of China's thermal power industry, which is supported by latest data. Then, policy orientation and its effect is discussed. It can be found out that policies on the respect of construction scale control, renewable power integration, feed-in tariff reduction and environmental protection were considered as the main solution to relieve the over capacity situation. Finally, we propose three suggestions for the future development of China's thermal industry.

Suggested Citation

  • Ming, Zeng & Ping, Zhang & Shunkun, Yu & Hui, Liu, 2017. "Overall review of the overcapacity situation of China’s thermal power industry: Status quo, policy analysis and suggestions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 768-774.
    • Handle: RePEc:eee:rensus:v:76:y:2017:i:c:p:768-774
    DOI: 10.1016/j.rser.2017.03.084
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    Cited by:

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    2. Tomas Baležentis & Dalia Štreimikienė, 2019. "Sustainability in the Electricity Sector through Advanced Technologies: Energy Mix Transition and Smart Grid Technology in China," Energies, MDPI, vol. 12(6), pages 1-21, March.
    3. Zheng, Xuemei & Wang, Lu & Hou, Jiajun & Nepal, Rabindra, 2024. "Capacity utilization rate and company performance before the COVID-19 economic crisis: Evidence from listed companies in China’s electricity industry," Energy Economics, Elsevier, vol. 131(C).
    4. Lin, Jiang & Kahrl, Fredrich & Liu, Xu, 2018. "A regional analysis of excess capacity in China’s power systems," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt44j2w0d0, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Penghao, Chu & Pingkuo, Liu & Hua, Pan, 2019. "Prospects of hydropower industry in the Yangtze River Basin: China's green energy choice," Renewable Energy, Elsevier, vol. 131(C), pages 1168-1185.
    6. Moret, Stefano & Babonneau, Frédéric & Bierlaire, Michel & Maréchal, François, 2020. "Overcapacity in European power systems: Analysis and robust optimization approach," Applied Energy, Elsevier, vol. 259(C).

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