Analysis of Global Power Market slide image

Analysis of Global Power Market

Analysis of China's Power Operation Market Carbon Trading Price Average Carbon Trading Price and Volume, China, 2013-2018 90 10 -60 50 50 40 40 10 • • Highlights In China, the carbon market saw a significant growth in trading volume, increasing from 0.4 million tonnes in 2013 to 59.1 million tonnes in 2018, presenting a CAGR of 178.6%. On the contrary, the average carbon trading price decreased from RMB 64.6 per tonne in 2013 to the lowest point, RMB 17.2 per tonne in 2017, and then bounced to RMB 21.1 per tonne in 2018, with a CAGR of -20.1%. Since the carbon market in China is still at the early stage, the majority of emission allowance quota allocated freely to emission companies. In the future, with the maturity of carbon trading in China, the proportion of non-gratuitous emission allowance will increase, additionally, the supervision of emission will increasingly strengthen, which will lead to increasing carbon trading price. In 2017, the NDRC issued the "National Carbon Emission Trading Market Construction Plan (Power Generation Industry)”(全国碳排放权交易市场建设方案 ()), which indicated the completion of the overall design of China's carbon trading system. As a large carbon emitter, thermal power sector will be important in the carbon trading market which will encourage the development of low-emission technology for thermal power. On the other hand, clean energy power plants will benefit from carbon trading due to its characteristics of zero emission. SULLIVAN Source: Frost & Sullivan 75 Million tonne RMB/tonne 80 100 CAGR (13-18) Average Price -20.1% 70 Trading Volume 178.6% 80 59.1 60 70 50 50 64.6 40 40 30 50 20 20 10 10 47.3 51.7 47.6 30 21.1 19.5 17.2 26.0 20 28.8 6.6 0.4 0 2013 2014 2015 2016 2017 2018 Trading Volume Average Price FROST
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