The Resources Inventory
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In anticipation of continuous decline in global spot prices, China’s leading policy-makers have prepared reforms to the country pricing system for the carbon fossil fuel market, specifically the coal market.
The Wall Street Journal reported that China is quickly assuming the role of global price setter ever since it surpassed Japan as the world’s largest importer of coal back in 2011.
China’s plan to reform coal prices will greatly affect resource-dependent economies such as Australia and Indonesia. Those two countries have supplied China with more than half of its coal imports in 2012.
China has implemented major policies and practice to increase its renewable energy capacity. However, it still depends on thermal coal for over two-thirds of its power. So the Chinese government delayed reforming its pricing policies and mandated that suppliers keep providing supplies at prices below the market rate.
But things are changing now that the National Development and Reform Commission (NDRC) recently proposed to the State Council that “thorough marketization reforms” be introduced to China’s coal pricing system.
The NDRC is one of China’s highest policy-makers. According to Chinese media reports, the NDRC proposed that the one-year term for key contracts between coal and power suppliers to two to five years, and that the floating range of the linkage between coal and power prices be doubled.
Joseph Fong, an analyst from Hong Kong-based, predicts that China is expecting the price of coal to keep dropping, which prompted the new pricing reforms.
“We believe the timing is quite telling,” Mr. Fong said. “The NDRC is choosing to reform the coal price now as it expects the coal price to continue to decline, allowing it to be successful. Otherwise,” he argued, “if the coal price was to rebound, the NDRC could again be forced to intervene with price caps.”
China has previously performed similar pricing reforms. Back in 2008, it had responded to global oil prices hitting a low of $40 dollar per barrel by liberalizing retail prices for diesel and gasoline.
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North Africa is slowly getting in the renewable energy trend as Morocco invests on more solar energy technology. The government expects that by the year 2020, the country will get 14% of the power through the sun.
Click on the photo to read more about the story.
With the rise of new energy sources, we look into the technologies emerging as ideal alternatives to current oil and gas resources.
Before anything, you may want look at the Standardization in the Petroleum Industry, and how these changes reflect the industry of today.
Next, you might want to read on the Largest Renewable Energy Sources Today, which will make you ask questions on why this particular source still hasn’t been tapped for its potential.
The answer however, comes from the post before this, on the report that economic realities prevent wind from potentially powering the globe.
PhDs from the likes of Massachusetts Institute of Technology and the California Institute of Technology comprised the academic group that reviewed BlackLight’s CIHT process. The scientists performed half a dozen separate, independent studies that confirmed the validity of BlackLight’s “Hydrino theory.”
With rising fuel costs, and an even turbulent economic climate, nations are looking for ways to manage rising electricity costs using renewable energy. Despite a better understanding of alternative and renewable energy sources, many states still depend on coal, oil and has for their electricity.
In the United States, the solar energy industry has found support only in regions with spars populations, and most of the solar panel projects are in test-phases. Many states are also just starting a late boom in the oil industry, which has pushed solar energy even further into the backseat.
Countries like Japan and Australia however, are looking steady into the future and investing on solar power. Japan, which is still reeling from the effects of the devastating earthquake and tsunami, import most of their fuel sources but has steadily looked into solar power for their electricity. Reports suggest by 2030, 35% of the country’s electricity will come from renewable sources, like wind energy or even biofuel.
The biggest hurdle facing solar energy, and many of the alternatives, would be cost. It remains a challenge for advocates of such technologies to convince communities of the long-term benefits of turning to renewable energy sources. Solar panels don’t come cheap, and thus, is a major investment. But those who support the alternative reassure that at least within 5 years, a return of investment is expected. The effects are immediate however, and so spending on solar energy may be hard on the pocket, but costs in utilities are quickly reduced.
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