CREA

The original intention of the capacity-based electricity price for coal-fired power was to reduce the dependence of coal-fired power units on revenue from electricity generation, enabling them to undertake more functions of peak shaving, reserve, and peak supply guarantee; however, mandatory medium- and long-term contracts have locked in a large amount of electricity generation and corresponding revenue for coal-fired power. The superposition of these two mechanisms has both squeezed the space for the consumption of clean electricity and reduced the pressure on inefficient coal-fired power to exit the market.

China’s decarbonisation will reshape demand for Australian resources – but probably not in the neat ways many are hoping for.

China’s energy transition has moved into a new phase. After a decade of rapid growth in solar and wind power, the challenge will now be to stabilise and manage an increasingly complex system, navigating geopolitical instability and the domestic economy.