China’s largest power producer sees 8.6pc drop in output in first half
Slower economy blamed, as Huaneng Power sells 8.35pc less electricity, while average on-grid settlement price decreased 12.37pc
China’s largest power producer Huaneng Power International said its power generation in the country shrank 8.6 per cent in the first half, amid a slowing economy.
Huaneng said in a notice to the Hong Kong Stock Exchange on Friday evening that its total power generation by power plants within China dropped 10.43 per cent in the second quarter compared with the same period last year. Total electricity sold dropped 10.06 per cent in the period.
“The whole nation saw sluggish growth in power consumption and a decrease in utilisation hours,” the company said in the notice, as a reason for its performance drop.
The company sold 8.35 per cent less electricity in the first half of 2016 compared with that of 2015, while the average on-grid electricity settlement price decreased 12.37 per cent, it said.
Heavy rainfall in the first half of the year led to a 16.7 per cent increase in the power generation of nationwide large-scale hydro-power plants and reduced the need for coal-fired power plants located in the middle and east of China, Huaneng said.
A “substantial increase” of cross-regional power transmission in the country also dampened the demand for coal-fired power generators in the coastal areas in the east and south of the country, where Huaneng’s capacities were concentrated.
New capacity in the market in Liaoning, Guangdong and Fujian, as well as new nuclear power generators in Guangdong and Guangxi further reduced demand for its output, Huaneng said in the same notice.