Page 10 - AsiaElec Week 17 2022

AsiaElec COAL AsiaElec

China’s no foreign coal

commitment could close 12.8

GW in the developing world

CHINA CHINA’S “no new coal overseas” policy has of 30 GW (36 plants) of plants already under
already had a significant impact on the coal construction.
power pipeline in the rest of the world. The guidelines also encourage upgrades
The newly released guidelines for greening to currently operating coal plants in line with
the Belt and Road Initiative (BRI) from China’s “international green rules and standards,” which
National Development and Reform Commis- should encompass 17 GW (18 plants) of operat-
sion (NDRC) provide clearer guidance on the ing plants with Chinese equity.
scope of President Xi’s pledge, according to the Overseas power plants have generally fol-
Centre for Research on Energy and Clean Air lowed lax host country standards, emitting lev-
(CREA). els of pollution far higher than China’s domestic
The report found that 12.8 GW (15 plants) allowances.
of China-backed overseas coal projects had been However, 19.2 GW (18 projects) remain in a
shelved or cancelled since September 2021, as a grey area of the pledge and could still go ahead.
result of revised energy policies in host countries Of this, 11.2 GW are projects that have secured
and withdrawal of support from Chinese firms. financing and the necessary permits but have yet
China currently has 86 GW (81 plants) of to enter into construction.
overseas coal power projects that are currently in Another 8 GW are proposed captive coal pro-
the construction and pre-construction pipeline, jects linked to BRI nickel and steel complexes in
the report found. Indonesia and considered a government prior-
Looking ahead, the newest NDRC Guidelines ity. Chinese firms were awarded EPC contracts
have the potential to stop 37 GW (32 plants) of on two new captive power plants linked to BRI
overseas Chinese-backed coal projects in the industrial complexes in Indonesia in 2022; this
pre-construction phase. highlights a potential loophole, where EPCs
There is also a recommendation that projects on BRI industrial projects are treated as an
under construction proceed with “caution,” exception.™
which should encourage the re-examination

P10 www. NEWSBASE .com Week 17 27•April•2022