In 2012, China's thermal power denitrification price subsidies were raised immediately.

The China Electricity Council has recently published the “National Electricity Supply and Demand Situation and Annual Analysis and Forecast Report for the First Half of 2012”, stating that at present, China’s pilot 0.8-kilowatt-hour denitrification tariff subsidies cannot compensate for the additional cost burden of thermal power plants. Further increase the demand. The reporter learned that the current joint development and reform commission of the Ministry of Environmental Protection has completed a thorough investigation of the progress of desulfurization and denitrification in thermal power plants in key regions in the country, and believes that the adjustment of thermal power and denitrification price subsidies faces real urgency.

According to the “National Electricity Supply and Demand Situation and Annual Analysis and Forecast Report for the First Half of 2012”, the total cost of the unit for the simultaneous construction of denitrification facilities for power generation enterprises is approximately 1.2 cents/kWh, and the total cost of installations for installation of denitrification facilities in technical upgrading is approximately 1.5. The sub-kWh, and the current pilot denitrification price of only 0.8 points / kWh, it is difficult to make up for denitrification operation costs and investment, so the power plant construction and operation of denitrification facilities is not high.

The reporter also learned that the national emission of nitrogen oxides increased by 5.73% year-on-year last year, and did not complete the goal of a 1.5% decline at the beginning of the year, which brought about considerable pressure to achieve the “Twelfth Five-Year Plan” emission reduction task. This year's NOx emission target was determined to be “zero growth”. However, emissions in the first half of the year still showed a slight upward trend. Therefore, people in the industry pointed out that from the perspective of the first half of the year, it is still difficult to achieve the goal of “zero growth” in nitrogen oxide emissions throughout the year. In order to achieve the emission reduction targets, the Ministry of Environmental Protection will next improve its economic policies and coordinate the relevant departments to issue some environmental economic policies as soon as possible, such as denitrification price subsidies.

In the situation where power generation companies have suffered losses and environmental pressures have been forced, the industry expects that the country's subsidies for denitrification electricity prices in the second half of the year may undergo an adjustment. If the adjustment rate can meet market expectations, the growth rate of thermal power and denitrification construction will accelerate. A report from Guotai Junan also corroborates this point. The report points out that throughout the “Twelfth Five-Year Plan” period, environmental protection policies will be in a process of continuous refinement. The heavyweight environmental protection policy in the second half of the year will be the introduction of denitrification electricity price, and the official electricity price is expected to be about 1 cent/kWh. ”

Experts pointed out that once this policy is implemented, it will directly stimulate investment in the market for thermal power and denitrification. In particular, the five major power generation groups that signed a letter of mitigation responsibility with the Ministry of Environmental Protection at the end of last year identified 68 million kilowatts of key denitrification retrofitting thermal power assembly machines this year. If the national thermal power unit is currently used for 2,100 hours, the 68 million kilowatts of denitrification capacity will be installed. It can drive nearly 1.5 billion yuan in investment.