How are rising power prices affecting China's energy industry?

Rising power prices are already impacting operations of electricity-intensive industries, with several companies in China temporarily curtailing ammonia and fertilizer production due to deteriorating margins caused by the sharp increase in gas prices. In China, rigid electricity tariffs have not followed the large increase in coal prices.

Does energy storage cost a system?

It, however, does not take into account costs and benefits at an energy system level: such as price reductions due to low-carbon generation and higher systemic costs when storage or backup power is needed due to the variable output of renewable sources — we will return to the aspect of storage costs later.5

How will rising electricity prices affect the economy?

The price increases are expected to result in sharp upward pressure on household energy bills and broader risks to economic activity. This is especially true for sectors directly exposed to the price rises. Many governments have taken measures to alleviate electricity bills, especially for vulnerable consumers.

Why are gas and coal prices high?

Gas and coal prices have recently risen to their highest levels in decades. These increases have been caused by a combination of factors, but it is inaccurate and misleading to blame the clean energy transition solely for this issue.

Why are lower energy prices so important?

The more renewable energy technologies we deploy, the more their costs will fall. More growth will mean even more growth. One last argument on why lower prices due to technological change are so crucial for making the transition to the post-carbon world.

Why do we need a new electricity supply?

In the coming years most of the additional demand for new electricity will come from low- and middle-income countries; we have the opportunity now to ensure that much of the new power supply will be provided by low-carbon sources. Falling energy prices also mean that people’s real incomes rise.