Southern China Edging a Power Crisis
The Chinese government's recent efforts to achieve energy savings and pollution reduction,along with the rising price of crude oil and a rigid energy supervision regime, is greatly affecting China's supply of electricity. Currently, the China Southern Power Grid (CSPG) is facing a supply crisis.
Oil Price Hinders China's Plan for Emissions Reduction
The higher the oil price the greater the need for China to secure and stabilize its energy supply, therefore making the country more dependent on a steady coal supply. While the hundred dollar barrel of oil seems to have a limited impact on China, what needs to be considered immediately is the impact the higher price will have on China's emission reduction plan.
Ending Oil Subsidies Serves China's Oil Security
State interventions in the forms of import or price controls constitute impediments to oil security. The oil market, if left unencumbered, can establish an equilibrium between supply and demand. The NDRC and MoF need to make up their minds to adopt measures promoting a well-functioning oil market rather than to introduce more distortions by showering subsidies on Sinopec and CNPC.
Energy Policy Mess
Beijing should endorse the rationale, seize the opportunity, and reinstitute the long-awaited Ministry of Energy (MoE), abolished in 1993, to prepare for daunting energy challenges facing the country in the 21st century.
77 Reviews, 10Reviews Per page, 8/8 Jump to : Previous1 2 3 4 5 6 7 8