2007Electric PowerRequires access

Analysis for influence of coal and electricity price linkage mechanism on electricity generation cost-profit

Huang Ping-li

Open publisher page 3 citations

Abstract

The impact of coal price fluctuation on electricity generation cost-profit is extremely remarkable. The national development and reform commission constituted the policy of coal-electricity price linkage. The quantitative analysis of the influence of implementing coal-electricity price linkage mechanism on economic benefit of power plant is concerned greatly by power plant. From two angles of both economic accounting and balance of profit and loss, the influence of coal-electricity price linkage mechanism on the cost-profit of power plant was researched, and the calculation models about this influence were given further. Through calculation of typical example, the conclusions show that when coal price rises 1%, the electricity generation profit will reduce at least 3% if coal-electricity price linkage mechanism is not implemented, while the electricity generation profit will reduce 0.95% if this mechanism is implemented.

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What this paper is about

The impact of coal price fluctuation on electricity generation cost-profit is extremely remarkable. The national development and reform commission constituted the policy of coal-electricity price linkage. The quantitative analysis of the influence of implementing coal-electricity price linkage mechanism on economic benefit of power plant is concerned greatly by power plant. From two angles of both economic accounting and balance of profit and loss, the influence of coal-electricity price linkage mechanism on the cost-profit of power plant was researched, and the calculation models about this influence were given further. Through calculation of typical example, the conclusions show that when coal price rises 1%, the electricity generation profit will reduce at least 3% if coal-electricity price linkage mechanism is not implemented, while the electricity generation profit will reduce 0.95% if this mechanism is implemented.

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Available abstract

The impact of coal price fluctuation on electricity generation cost-profit is extremely remarkable. The national development and reform commission constituted the policy of coal-electricity price linkage. The quantitative analysis of the influence of implementing coal-electricity price linkage mechanism on economic benefit of power plant is concerned greatly by power plant. From two angles of both economic accounting and balance of profit and loss, the influence of coal-electricity price linkage mechanism on the cost-profit of power plant was researched, and the calculation models about this influence were given further. Through calculation of typical example, the conclusions show that when coal price rises 1%, the electricity generation profit will reduce at least 3% if coal-electricity price linkage mechanism is not implemented, while the electricity generation profit will reduce 0.95% if this mechanism is implemented.

Key concepts: Electricity, Coal, Electricity price, Electricity generation, Linkage (software), Profit (economics), Electricity market, Economics

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