Power generation companies speed up mergers and reorganizations to develop an integrated energy structure

SERC: Accelerate mergers and reorganizations to form a comprehensive energy development pattern The State Electricity Regulatory Commission issued the “Annual Report of the Power Generation Business of 2010” on the 1st that power companies have accelerated mergers and acquisitions in the past five years, through mergers and acquisitions of equity and assets, etc. Various forms of integrated resources have been extended to upstream and downstream industrial chains such as coal, coal chemical industry, and aluminum industry, and a comprehensive energy development pattern has taken shape.

The circular said that in particular the major large-scale power generation enterprises have used their advantages to speed up the pace of mergers and reorganizations and presented four major characteristics: First, in order to cope with the increase in coal prices and supply risks, the primary coal-based primary energy industry layout in the upper reaches has been accelerated. Development of transportation and logistics industry; second, optimizing regional industrial distribution, giving full play to the Group’s comprehensive advantages, promoting the development of downstream industries, and extending to various fields such as coal chemical industry and aluminum industry; and thirdly, strengthening capital operation, involving in the financial sector, and building a platform for **. Provide financial support for expansion of power generation business and promotion of upstream and downstream industrial chain extensions; Fourth, actively expand overseas development space and strengthen international energy cooperation.

With the continuous rise in the price of thermal coal in recent years, the proportion of fuel costs in the total cost of power generation is increasing, prompting power generation companies to accelerate their deployment in the upstream coal sector. According to the report, last year, the holding coal resource reserves of Huaneng, Datang, Huadian, Guodian and China Power Investment continued to increase, and the coal production capacity was gradually released, and the coal self-sufficiency was gradually enhanced.

As of the end of last year, Huaneng Group had approximately 40 billion tons of coal holdings, with a production capacity of 64.12 million tons/year and a production capacity of 48.86 million tons/year. Datang Group has a coal holding of approximately 18.5 billion tons and a production capacity of 14.2 million tons/year. 10,000 tons/year; Huadian Group holds approximately 22.6 billion tons of coal holdings, with a production capacity of 13.15 million tons/year and output of 9.31 million tons/year; Guodian Group holds approximately 14 billion tons of coal holdings, with a production capacity of 37.8 million tons/year and output of 2700 tons. 10,000 tons/year; CPI Group has approximately 12.6 billion tons of coal holdings, with a capacity of 72.75 million tons/year and output of 54.1 million tons/year.