Market Trends of China Thermal Power Plant Industry
This section covers the major market trends shaping the China Thermal Power Plant Market according to our research experts:
Coal Segment Expected to Dominate the Market
- Coal-fired power plants generate energy from the combustion of coal. The country is the largest producer of coal globally uses most of its coal to produce electricity. In 2019, the country produced approximately 79.28 Exajoules of coal, around 47.63% of the global coal production.
- The country's significant share of energy comes from coal-fired power plants, and factors such as rapidly increasing industrialization and urbanization are expected to drive the thermal power plant market in the country during the forecast period.
- In 2019, the total electricity produced by coal energy in China was 4853.7 terawatt-hours (TWh), which was higher than the region produced in 2018, 4765 TWh. The increase in energy generation from coal exhibits the growing usage of coal in the coal. Coal being in abundance and economical for the country is widely used by the power generating companies.
- Leizhou Thermal Power Project in China has a power installed capacity of 6000 megawatts (MW). It started in 2015 and is expected to be completed by 2022. The coal-fired power plant will consist of six ultra-supercritical coal-fired units rated at 1,000 megawatts (MW). Two 1000 megawatts (MW) units are expected to be installed during the first phase of the project. A 100000 tonscoal unloading dock and a 3000-ton heavy cargo dock are also being constructed for the project. The project is expected to create a positive impact on the thermal power plant in the country.
- Moreover, the country plans to launch more of its new coal-fired power plants after the COVID-19 situation, which is likely to drive the thermal power plant market. Despite being the depleting air conditions in the country, the government still wants coal to be a significant part of its energy source and economy.
- Hence, owing to the above points, the coal segment is likely going to dominate the China thermal power plant market during the forecast period.
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Increasing Thermal Power Projects Expected to Drive the Market
- China has the largest population, because of which there is a constant increase in the energy demand that requires an increasing number of industrial operations and continually growing demand for power supply in the residential regions of the country are expected to drive the thermal power plant market.
- China currently has 45 nuclear power reactors that are operational and 12 that are either under construction or in the development phase. Due to the excessive use of coal-fired power plants and the pollution it causes, the China government has a long term target to use more closed-cycle nuclear power to satisfy its energy demand.
- In 2019, the total thermal energy generated in China was 5444.9Terawatt-Hours (TWh), higher than the energy production of 2018, 5281TWh. The increasing thermal energy in the country exhibits a conventional form of generating electricity, which is more economical and fulfills all the country's raw material requirements. This is expected to drive the thermal power plant market in China.
- Since 2000 the country saw the most dramatic changes had taken place in energy share. Its coal fleet grew five times between 2000 and 2019 to reach 1,005GW, nearly half the global total.
- China approved nearly 10 Gigawatts (GW) of new coal-fired power generation projects in the first quarter of 2020, approximately equal to the amount agreed for all of last year.
- Shandong Shenglu Coal-Fired Power Project in China can produce 4000 megawatts (MW) of energy. Its first phase was planned to be completed in 2019, and the second phase to be started in 2020. The project is expected to be one of the flag bearers for the country's thermal power plant market.
- Hence, owing to the above points, increasing thermal power projects are expected to drive the China thermal power plant market during the forecast period.
