News
State Grid denies rumored dismantling
The State Grid Corporation of China, the country's largest power transmission company, on Wednesday said that contrary to some media reports, it has not received any notice of being dismantled. "Based on our information from the institutional reform department under the National Development and Reform Commission, there have been no words so far about splitting up the State Grid in the State Council's preliminary plans to boost economic restructuring in 2013," said Jia Fuqing, head of the institutional reform office of the State Grid. On Tuesday, the China Daily website said a program to dismantle the State Grid was underway, citing the Shandong-based Jinan Daily. (China Daily) Read more
Potable seawater to soon flow to Beijing
Beijing is likely to begin piping in desalinated seawater from the Bohai Sea in three years, says the State-owned Beijing Enterprises Water Group Limited, claiming that it has mastered the core technology of seawater desalination. "The water meets all the 106 indices listed in the national water quality standards and has a higher degree of safety than the tap water Beijing is using now," said Zhang Yilan, manager of the seawater desalination department. Water will be transported 270 kilometers to Beijing through underground pipes through Tangshan, Tianjin and Langfang in Hebei Province, the report said. (Global Times) Read more
Suntech defaults on $541M bond payment
Suntech, one of the world's biggest solar panel manufacturers, said Monday it has defaulted on a $541 million bond payment. It's the latest sign of the financial squeeze on the struggling global solar industry. Suntech Power's announcement was a severe setback for a company lauded by China's Communist government as a leader of efforts to make the country a center of the renewable energy industry. Suntech was due to make a $541 million bond payment on Friday but ran short of cash following heavy losses the past year. (USA Today)
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China’s oil demand to grow 5% this year: Barclays
China’s National People’s Congress this week introduced modest growth targets that have commodities investors worried, but the softer targets are unlikely to dampen the nation’s oil demand.
Barclays, in a note sent out Friday, estimates China’s oil demand is set to grow 5% this year. Oil demand is on a rebound from a bottom in mid 2012, the investment bank said. (Market Watch)
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Beijing to promote LEDs in star-rated hotels and metro platforms
Beijing Tourism Commission recently connected 7 LED manufacturers with 161 star-rated hotels to switch Incandescent lamps to LEDs. The modification work aims to be done by June this year. 30% of the cost will be covered by the central budget, 20% by the municipal budget and the rest by enterprises. In the meantime, 6 metro stations in Beijing are switching to LEDs. The move is expected to save up to 1 million kwh every year. (OfWeek.com, Sina)
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China’s LNG trucks may rise fivefold by 2015, Bernstein says
China’s LNG-fueled heavy-duty trucks may increase fivefold in less than two years as the country fights air pollution, Sanford C. Bernstein & Co. said. Liquefied natural gas may power 247,000 vehicles by 2015, up from 51,000 last year, reducing China’s dependence on oil imports, Neil Beveridge, a Hong Kong-based analyst at the company, said in an e-mailed report today. The county has 5 million heavy-duty trucks, Bernstein said. (Bloomberg)
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China plans to reduce on-grid prices for solar power
The NDRC is considering abandoning a single national benchmark for on-grid solar power tariffs and may instead introduce differentiated pricing across four regions, according to a draft proposal from the National Development and Reform Commission (NDRC) which is currently being shared with local governments and power generators. (The Economic Observer)
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National Energy Administration will be restructured to incorporate State Electricity Regulatory Commission
According to a ministrial structure reform plan released during the NPC and CPPCC meetings last week, State Electricity Regulatory Commission (SERC) will be shut down and incorporated into the new National Energy Administration (NEA). The incorporation will strengthen the regulation and supervision of the electricity market, yet new approaches for electricity market reform are still needed. (Yicai) Read more
China to dismantle its entire railway ministry
The Communist Party has announced plans to dismantle its entire railway ministry, which employs more than 2m people, has debts larger than the Danish economy and is renowned for graft.The regulatory and operating roles will be separated to stamp out corruption at one of the country’s last major monopolies. (Telegraph)
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China fears for oil deals as it loses ally Chavez
Venezuelan President Hugo Chavez's death could jeopardize China's oil deals with an important Latin American ally. Venezuelan opposition leader Henrique Capriles had recently said he would "revise every deal" with Russia and China that Chavez approved if he came to power. Chavez used his influence to help Beijing expand its trade in Latin America and reach a trade volume of $250 billion last year. (Times of India)
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