Exploring the significance of China's on-grid tariff cut

Recently, it has been rumored that the long-established on-grid tariff cut has finally settled. Excluding adjustments in Yunnan Province and Sichuan Province, 29 provinces lowered their on-grid tariffs by an average of 1.4 cents/degree. When the price of coal rises and electricity prices are lowered, can coal prices rise up? Experts believe that from the perspective of the entire energy development plan, the proportion of renewable energy power generation will increase rapidly, and price cuts will also help raise funds for renewable energy funds. As a result, the overall look at the photovoltaic industry in denitrification equipment and new energy in the environmental protection industry. .

Limited impact on thermal power companies

This time, after a four-year cutback in November 2009, China reduced the on-grid tariff again. It is understood that the last time the on-grid tariff adjustment was in 2011, when the thermal power industry was facing high coal prices and operating difficulties. The current downgrade is at a time when the current coal price is down, and the operating status of thermal power plants is no longer the same.

According to the 2013 forecast, the reduction in electricity prices will reduce the thermal power industry's revenue in 2014 by about 5% and net profit by about 18%.

The power generation companies are even better off their own accounts. In an announcement issued on the evening of October 8, Shanneng Co., Ltd. disclosed that it has received a notice from the National Development and Reform Commission that the price of electricity will be reduced by 0.01 yuan/kWh from the date of September 25, 2013. It is expected that operating income will decrease by 12 million yuan; 10 On the 9th of the month, Huayin Electric also stated that the adjustment of the electricity price is expected to have a negative impact on the company’s profit and loss in the fourth quarter of about 30 million yuan, and negatively affect the profit and loss of each subsequent fiscal year of about 120 million yuan.

Although the power companies have clamored for the poor, but in the industry's view, the on-grid tariff cuts have limited impact on thermal power companies. It is worth noting that the profit loss caused by the reduction in on-grid electricity prices is compared with the total profit of the power plant. Shen Wen Wanguo industry analyst Yu Wenjun thinks.

It is understood that the reduction in on-grid tariff by 1 cent per kilowatt hour is a drop of 33% in profits for many thermal power companies, but power companies still have a considerable profit margin, far higher than the period before 2012 when coal prices were high. It will not affect the normal operation of the power company. In addition, although the profit of thermal power has been damaged, some enterprises can also meet the emission requirements of dust removal subsidies through denitrification and dust removal to compensate for the losses.

Price transmission coal price pressure

In addition, in the eyes of the industry, although this price cut is not related to coal-electricity linkage, but this part of the profits will be inevitably transmitted to the upstream coal companies, coal prices or pressure again.

Since the beginning of this year, due to the continuous decline in coal prices, the income of power companies has increased significantly. The reduction in on-grid tariffs has led to a decline in the profitability of power companies. Obviously, after the on-grid tariff reduction, power companies and coal companies will enter the game again. In the coal market oversupply pattern, coal companies and power companies in the game of coal companies have been disadvantaged, will be even worse.

Treasurer’s coal analyst Pu Xiaohua said that the transmission of pressure from the power companies to the coal companies is certain, but it’s just a matter of how much. At present, coal prices have just recovered from the winter storage. Affected by the reduction in electricity prices, coal prices may be resisted by power companies during the process of rising coal prices.

In fact, coal prices have continued to fall for more than a year. Power plants do not actively purchase and inventory is low. The coal industry, which is still in a state of oversupply, has recently been in a rare recovery period. With the increase in demand for winter storage, and the maintenance of the Daqin Line is imminent, the purchasing enthusiasm of power companies has been significantly higher than before, so large coal enterprises have seized the opportunity to increase prices in the short term. Other companies will follow suit one after another.

The person in charge of a coal company in Shandong told reporters that Shenhua Group’s recent coal varieties have risen by RMB 3 to RMB 5 per ton. In addition, coal companies such as China Coal Group, which launched in the northern port of Hong Kong, are also synchronizing. price. In the case of oversupply and the multiple pressures of downward pressure on electricity companies, it is still to be tested whether coal companies can make a living.

Renewable Energy Benefits

Contrary to the downgrade of thermal power on-grid tariffs, renewable energy power generation has received greater support at this time.

Recently, the National Development and Reform Commission issued a notice that since September 25 this year, in addition to electricity for residential life and agricultural production, other renewable energy price surcharges have been raised from 0.8 cents per kilowatt-hour to 1.5 cents per kilowatt-hour. The compensation rate for denitrification electricity price of power generation enterprises is increased from 0.8 points per kilowatt-hour to 1 point per kilowatt-hour. For coal-fired power generation enterprises with soot emission concentrations below 30 milligrams per cubic meter, electricity price compensation of 0.2 cents per kilowatt-hour is applied.

The NDRC emphasized that under the premise of keeping the current total level of sales electricity prices unchanged, the main use of the electricity price space vacated by the drop in thermal coal prices will solve the source of the above-mentioned electricity price adjustment.

Lin Boqiang, director of the China Energy Economic Research Center at Xiamen University, said that from the perspective of the NDRC's measures, it is not entirely due to the decline in coal prices and the reduction of on-grid tariffs. It also supports the development of new energy industries, reduces thermal power generation to reduce pollution, and improves environmental protection. intention. From the perspective of the overall energy development plan, the proportion of renewable energy power generation will increase rapidly, and price cuts will also help raise funds for renewable energy funds. Therefore, the overall look at the photovoltaic industry in denitrification equipment and new energy in the environmental protection industry.

Dicyandiamide.Calcium cyanamide can be used as a pesticide intermediate

For many years the most important commercial process was via heating dicyanodiamide ([dicy"), either with ammonia or on its own, under pressure. The [dicy" is prepared by heating cyanamide solution at 70–80 °C. The cyanamide itself is prepared from calcium cyanamide:
Heated [dicy" to just above its melting point (209 °C) results in a vigorous exothermic reaction, producing some melamine and ammonia together with a number of complex water-insoluble deammoniation products:
In order to achieve a high yield of melamine in the commercial process, the reaction is carried out in the presence of ammonia at about 300 °C under pressure.

Pesticide Intermediates

Pesticide Intermediates,Calcium Cyanamide Fertilizer,Granular Calcium Cyanamide,Ultra Micronized Dicyandiamide

NingXia Yuanda Xingbo chemical CO.,LTD , http://www.ydxbchem.com