Connect with us

Hi, what are you looking for?

CleanTechnica
A new ultra-high voltage transmission line launched this week in China is expected to dramatically cut demand for thermal coal, according to market sources quoted by S&P Global Platts. 

Coal

Chinese Thermal Coal Demand Set To Fall With Launch Of New Power Transmission Line

A new ultra-high voltage transmission line launched this week in China is expected to dramatically cut demand for thermal coal, according to market sources quoted by S&P Global Platts. 

A new ultra-high voltage transmission line launched this week in China is expected to dramatically cut demand for thermal coal, according to market sources quoted by S&P Global Platts.

A coal-fired power plant in Shuozhou, Shanxi, China. Credit: Kleineolive/Wikimedia Commons/CC BY 3.0 license

The new ultra-high voltage transmission line, stretching 3,324 kilometers (2,065-miles) from the Xinjiang province in Western China, through the Gansu, Ningxia, Shaanxi, and Henan provinces, before ending in the Anhui province city of Xuancheng, in the country’s east.

The new transmission line, with a voltage of 1,100 Kilovolts (kV), is designed to transmit 66 billion kilowatt-hours (kWh) each year, according to Xinhua News, the state-run Chinese news agency, which reported the news last week. It is believed that the majority of the electricity to be transmitted will stem from the Zhundong coal-fired power plant in northern Xinjiang, which has an installed power generation capacity of 28 gigawatts (GW).

The transmission line is part of a larger plan to reduce coal reliance in the east of the country. New coal-fired power stations have been banned in the east of the country due to the massive air pollution problems suffered there.

However, Xinhua News Agency is also reporting that the transmission line is expected to reduce Chinese coal usage by about 30 million megatonnes per year. S&P Global Platts, quoting several unnamed market analysts from China, expects that the new transmission line will not only affect China’s demand for imported thermal coal but will also place pressure on domestic coal prices.

“In the past, it was difficult to transport coal out of Xinjiang, so the impact of Xinjiang coal production [on China’s overall demand] had been minimal,” said an east China-based coal analyst quoted by S&P Global Platts. “Now, with the direct power transmission, it’s equivalent to adding a stable supply to the market. In addition, Xinjiang coal prices are much cheaper [than other regions].”

“Demand for thermal coal from coal-fired power plants in east China will fall further [with the launch of the new line],” said another east China-based trader, quoted by S&P.

The expected reduction in coal, while unclear in all English-based reporting, seems to stem from the difference between locally-generated coal-fired electricity and imported thermal coal generation. By transmitting electricity from an already coal-heavy area of China, which presumably is not utilizing the entirety of what is generated, coal demand on the other side of the country will decrease.

These ultra-high voltage transmission lines are also expected to be able to transfer high levels of renewable energy generated in the west of the country to provinces in the east and central region of China. The country’s National Energy Administration approved 12 of these new transmission lines last September, which are aimed at specifically transferring renewable electricity.

According to Reuters reporting on the launch of the new transmission line, China had 136 GW worth of cross-region electricity transmission capacity as of the end of 2018.


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Clean Power

People asserting that SMRs are the primary or only answer to energy generation either don't know what they are talking about, are actively dissembling...

Batteries

Through 2060, pumped hydro storage will maintain its grid dominance, but redox flow technologies, lithium ion and many also-rans will deliver 3.6 TW.

Cars

Plugin electric vehicles are a hot item in China right now, and they scored a near-record 211,000 registrations last month. That was a 244%...

Cars

The Auto Shanghai 2021 season is here from the 19th to 28th of April, which means brands are showing off new EVs for the Chinese...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.