Cost Analysis and Development Strategies for China’ Natural Gas Power Generation Industry Under the Situation of Energy Price's Reformation

Driven by Chinese government, China's natural gas power generation industry has to deal with the energy price's reformation, the price of natural gas, electric power and some other energy source will be made by market instead of government. In recent years, China's natural gas power generation industry has made an unprecedented progress in the development of improving the energy structure and promoting Green Economy greatly. By establishing the cost estimation model of natural gas power generation and using the method of analysis for sensitivity factor, we think that the prime cost of natural gas is high in aspect of energy source cost. However, from the point of view of carbon emission cost, the cost of natural gas power generation is lower than coal power generation. On the other side such as power generation equipment, most of constant costs has been spent on imported power generation equipment. Therefore, Chinese natural gas power generation industries should work together with the China government for reducing the price of natural gas, realizing the gas turbine home-made, establishing the natural gas storage system and finally stabilizing natural gas supply.