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Due to China’s power industry policy of increasing energy efficiency, coal consumption for power will rise at 9.4%.
Chart 4: Coal Power Output Projection
Chart 5: Coal Consumption for Power
1.3.3 Coal Price V.S. Electricity Price
Electricity price in China is completely fixed by the government, while governmental interference in coal price is much less stronger. Pushed by soaring demand and increasing price of international energy market, coal price keeps on rising in China. As a result, coal power plants are expected to incur great loss in 2008, while profit soars for coal miners. Besides, electricity shortage is believed to be severe this year...
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