Anhui Wenergy Co., Ltd., a Shenzhen-listed power producer headquartered in eastern China's Anhui province, said coal supply under long-term contracts accounts for 70-80% of its coal consumption, with the remaining sourced from the market.
However, the company noted the price difference between contract coal and spot coal has been gradually decreasing.
Spot coal prices have been declining for nearly two months since late February. This suggests a decrease in expenses for producers who mainly depend on coal-fired power generation.
With a total controlled and owned capacity of over 26 GW, as well as 12 GW staked by the company and 4.96 GW (equity 2.66 GW) currently under construction, Wenergy said these coal-fired power units are subject to a capacity-based power pricing policy. The standard tariff for 2024 is set at 100 yuan/KW.
The company did not import coal directly last year. However, it stated that it will closely monitor price changes of imported and domestic coal and enhance policy research this year, with the intention of engaging in relevant procurement activities for imported coal opportunistically.
(Writing by Alex Guo Editing by Harry Huo)
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