China Considers Charging Users to Compensate Utilities for Building Coal Plants
- Policy would increase electricity prices, says BloombergNEF
- Coal still powers the bulk of the nation’s electricity supply
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China is considering compensating utilities for all the coal-fired power they’ve built, including plants that are likely to sit idle as Beijing accelerates its transition to clean energy.
The reimbursement would come in the form of capacity fees for power users, in addition to the rates they pay on the electricity they consume, according to a draft of the plan seen by Bloomberg.