The spread of power surplus crisis The three major power groups a number of coal power project was canceled Analysts said that with the development of power overcapacity intensified, ringlock scaffolding some high cost enterprise or the first to be eliminated – reporter Li Chunlian The excess power crisis is spreading further. Recently, the National Energy Bureau to cancel the 15 do not have approved the construction conditions of the coal project, which has 9 projects involving five major power groups in Guodian, Datang and Huadian group. In fact, since last year, the problem of excess power is quite prominent, and this year of thermal power installed scale are still rising. The National Energy Bureau said, according to the situation, the next few years, China's coal industry will now become the steel and coal industry. Analysts believe that with the development of power overcapacity intensified, electricity prices will be much less competitive is eliminated, the thermal power enterprises closures or will come. The 15 coal power project was canceled "Securities Daily" reporter learned that, in September 23rd, the National Energy Board issued "on the abolition of a number of do not have notice of the approval of construction conditions of coal power project" (hereinafter referred to as the "notice"), the abolition of 15 kilowatts, 12 million 400 thousand do not have approved the construction conditions of coal power project. These projects are located in Jilin, Shanxi, Shandong, Shaanxi, Sichuan, Jiangxi, Guangdong, Guangxi, Yunnan and other provinces. Among them, there are 9 projects, involving five major power generation enterprises in Guodian, Datang and Huadian group. Guodian canceled projects up to a total of 5 projects, 6 million 500 thousand kilowatts installed was canceled, canceled 12 million 400 thousand of the total accounted for 52.4% kilowatts; 3 projects, Datang Group's installed capacity of 1 million 900 thousand kilowatts was canceled, accounted for 15.3%; 1 projects, Huadian 300 thousand kilowatts installed capacity accounted for was canceled. 2.4%. It is worth noting that, because of overcapacity in coal, coal to cancel the project or just a start. "Notice" also said that the provinces (autonomous regions and municipalities) development and Reform Commission (Department of energy) to further cancellation elsewhere in the region do not have the approval (construction) condition of coal power project, timely report to the national energy board and to the public. It should be mentioned that in April this year, the national development and Reform Commission, the National Energy Board issued "on further improving the coal industry, eliminate backward production capacity of the" notice "on the promotion of China's coal and orderly development of the notice", "on the establishment of risk early-warning system for the planning and construction of coal and coal released in 2019 planning and construction risk warning notice" 3 document. National energy secretary Nur Bekri at the meeting pointed out that in recent years China's rapid increase in the scale of coal loading machine, coal overcapacity potential risk gradually. This year is expected to add installed capacity will exceed fifty million kilowatts. According to this situation, the next few years, China's coal industry will now become the steel and coal industry. According to the above documents, will cancel the group does not have the conditions of coal power project approval. Not long ago, Zhejiang Province issued the "energy development" 13th Five-Year "plan" pointed out that no new coal-fired power projects, complete the province's existing more than 300 thousand kilowatts coal-fired generating units, public owned more than 100 thousand kilowatts coal-fired generating units, and cogeneration units with ultra low emission energy-saving transformation and upgrading, shutting down 300 thousand kilowatts coal-fired units. The industry is expected to have coal production capacity, this year and next year there will be a large number of coal power project was halted. Thermal power enterprise closures or coming In fact, from the beginning of last year, the problem of excess power has been very serious. According to CEC 2015 power industry statistics express statistics, the country and more than 6000 kilowatts of power generation equipment, the average utilization hours continue to decline, in 2015 the national average utilization hours of power generation equipment for 3969 hours, down 349 hours, is the lowest level since 1978. At the same time, by the end of 2015, the full aperture of thermal power installed a total of 990 million kilowatts, 880 million kilowatts of thermal power, coal accounted for the proportion of 89.3%, the growth rate is far greater than the installed power demand growth. Since this year the price of coal has lower power, electricity prices are not mutually profitable, weakness, competing to be launched new units to occupy the market. Until last year, the thermal power construction is still expanding. But at the same time, renewable energy increased, continued weakness in demand. The electric enterprises to the "Securities Daily" the reporter said, since coal prices fell since the thermal power unit, the relatively high rate of return, investment enthusiasm is very high electricity prices is not surprising, but also made no small contribution to pull the local GDP. Therefore, the local initiative to eliminate lack of power unit production enthusiasm is not high. Affected by the above factors, thermal power utilization rate of decline is expected to continue in the long term, overcapacity in thermal power industry may be more apparent. According to the prediction of the Milky Way securities, 2016 -2017, thermal power industry equipment, the average utilization hours were only 4007 hours and 3839 hours, the capacity utilization rate is likely to fall below 50%. Guodian group chief economist Zhang Shumin recently participated in the "top 500 enterprises China forum said, small power plants, environmental non-compliance of the power plant, does not need the government forced to close their hard running, collapse. Guodian also faces the issue of resettlement workers handling zombie companies, closures and consequent. The electricity industry analyst told the "Securities Daily" the reporter said that with the increasing of power overcapacity, is not far from the thermal power enterprises collapse days. As today's coal enterprises, some of the higher cost of small and medium enterprises or the first to be eliminated.