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Project Insights

Power exchange no fix for Guangdong gas power

The commercial prospects of the gas-to-power sector in Guangdong province remain dim, nearly three years after local power producers were permitted to seek better prices for their output on a regional exchange The commercial prospects of the gas-to-power sector in Guangdong province remain dim, nearly three years after local power producers were permitted to seek better prices for their output on a regional exchange.
By Tang Tian 12 September 2019 Asia Pacific / Pipelines, Storage & Power 0 34574
CNOOC Gas & Power Group's LNG-fired power plant in Guangdong province. (CNOOC)

The key issue: Access to a regional power exchange for operators of gas-fired power plants in China’s Guangdong province has not lived up to expectations.

Interfax analysis: Gas-fired power producers in Guangdong province received approval at the start of 2017 to sell output on a regional power exchange in an effort to improve their commercial prospects. But access to the exchange has not improved the commercial side of gas-fired power in China’s leading gas-to-power market, with plants making losses overall.

This could threaten