China Energy Investment to ensure sufficient and stable power supply

China Energy Investment Corp said it will further ramp up domestic coal output to ensure sufficient and stable energy supply in the country amid a tight global market.

While boosting domestic coal production, China Energy will ensure clean and efficient utilization of the fossil fuel as the country goes full throttle on its green energy transition with the aim of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.

The company produced 300 million metric tons of coal during the first half, up 6.2 percent year-on-year, while its power generation during the period rose to 526.4 billion kilowatt-hours, up 1 percent year-on-year, said Zhang Yuxin, spokesperson for the company, during a news conference in Beijing on Monday.

Coal sales of the company rose to 390 million tons, and both revenue and net profit rose to record highs, he said, without disclosing the actual figures.

An analyst said domestic coal suppliers' efforts in ramping up energy output will further ensure domestic power supply to avoid possible shortages against a backdrop of geopolitical tensions and extreme weather conditions like heatwaves.

Clean coal, together with gas power, will play a crucial role in ensuring the stability and consistency of a new power system dominated by new energy in the country, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

Coal-fired power, however, continues to have strategic importance in the country's energy mix. While China has been actively developing cleaner alternatives like wind, solar and hydropower on a large scale, coal-fired power remains irreplaceable as renewable power like wind and solar is intermittent and not able to continuously generate power.

Luo said he believes coal will continue to play an integral part in China's energy supply in the years to come.

International trends have pushed global energy prices up significantly this year. Consequently, China's efforts to stabilize domestic prices have also increased and energy supply has held steady.

Data from the National Bureau of Statistics showed that first-half coal imports at 115 million tons were down 17.5 percent year-on-year. On the other hand, the country mined 2.19 billion tons of coal, up 11 percent year-on-year.