March 5, 2010 - The nationwide tight coal and power supply since last winter has reflected the vulnerability of the upstream and downstream of the existing coal and power industries. To enter the upstream coal industry and achieve the integration of coal and power is an approach to get out of the coal and power dilemma, sources reported.

Huaneng Group's coal output reached 47.72 million tons in 2009. It's expected the newly added coal production will exceed 15 million tons in 2010. China Power Investment Group plans to add 22.6 million tons of coal this year to make its total production reach 72.75 million tons. Although Datang Group has an annual planned production of merely 7 million tons this year, it aims to hit 100 million tons in 2015. Huadian Group puts forward the target for 2010 that 31 million-ton coal projects will be approved, and 31 million-ton projects will start construction so that the production of coal mines in which it has stakes will exceed 100 million tons. In addition, Guodian Group has also made relevant business plans on the coal industry.

Despite the fact that power companies develop coal resources doesn't comply with the principle of specialization, power groups also have their own troubles. In recent years, power coal shortage has occurred from time to time. Power coal supply lacks guarantee, and the soaring coal prices have plunged power companies into loss. Many power companies have gradually formed coal self-supply by investing in the coal industry. Whether the move has squeezed out the profits of the coal enterprises has yet to be decided.

Source: China Energy Net