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Experts call on China to establish coal reserve mechanism and coal market
Zhu Hongren, the deputy director of the Economic Operation Bureau at the National Development and Reform Commission, highlighted during yesterday's "2007 Annual Economic Operation Press Conference" that the commission is actively exploring various modern transaction methods to improve coal supply efficiency.
According to data from the China Electricity Regulatory Commission, as of January 25, national coal stockpiles stood at approximately 21.42 million tons—less than half of the usual level. The coal reserves are still decreasing by nearly 300,000 tons per day. Wang Junmin, vice chairman of the Electricity Regulatory Commission, noted that 17 provinces across the country have experienced power outages, with coal shortages being a major contributing factor. Additionally, severe snow, ice, and freezing conditions in certain regions have further strained the transportation of coal, electricity, and oil.
In response to the ongoing coal shortage and its impact on energy supply, Zhou Chengxiong, a researcher at the State Grid Beijing Economic and Technical Research Institute’s Finance Institute, urged the establishment of a coal reserve system and a coal futures market. He emphasized that material reserves should not only address shortages but also help stabilize the market and prevent sudden price fluctuations. For instance, releasing reserve coal when prices spike could ease supply pressure and curb hoarding practices.
The idea of a coal reserve mechanism has already drawn attention from the National Development and Reform Commission. Zhu Hongren confirmed that the commission is actively studying and considering different forms of modern transactions. He also mentioned that shifting from traditional coal order systems to a more demand-driven and centralized coal trading model is likely to be the future direction of coal market reforms.
Moreover, Zhu clarified that the government does not plan to increase power generation from small coal-fired or thermal power plants to alleviate current energy challenges. Instead, efforts are focused on ensuring the smooth transportation of coal, electricity, and oil. Under safety guarantees, coal mining operations will be organized to boost coal supply and meet growing demands.