The Operating Predicament Of Zhangze Power Plant And Corresponding Management Strategies And Policy Proposals

Coal price has continued to rise unilaterally since 2008, combined with pressure from state-controlled lower electricity prices, results in extensive deficits in power plant in China. In this paper, the current predicament and long-term consequence from the difficult position of power plant are discussed and a break even analysis is applied to Zhangze Power Plant as an example to explore the reasons for this situation. This research suggested that the deficits problem can not be settled by any single approach. In order to reduce and control loss or even make up deficits and increase surpluses, attention should be paid on rising in the price of electricity, reducing the price of coal, lowering coal consumption, and increasing the electric energy production as well.The author proposed solving the operating difficulties both externally and internally. Internal measures includes enhancement of fuel management and economical efficiency by means of comprehensive cost model and fuel management model. External measures should mainly rely on financial policy form state or local government. Firstly, a regional or state level linkage between coal price and electricity price should be implemented, so as to narrowing the price gap with neighbor provinces and carrying out policy research on electricity price; Secondly, regulate the coal market by macroeconomic control; Thirdly, financial subsidies should be given to the power companies in heavy losses due to policy.The comprehensive cost model in internal measures calculated both the cost of coal and additional cost caused by coal type changing. Not only the cost of coal is considered, but also that of air pollution, sewage disposal, ash disposal, and the maintenance costs as well. Through this comprehensive cost model, the most economic coal quality can be obtained.The fuel management model proposed is base on the comprehensive cost model and consisted from following three sub-models:coal blending and coal unloading guidance model, which keeps the property of furnaced coal in a stable state and ensure the safe operation of boiler; the coal price formulating model can be used to predict the reasonable unit price of any certain coal and provide real time guidance for coal purchasing; and the purchaser reputation model makes use of additional expense caused by deficit calorific value as bases of creditworthiness evaluation. All of above will provide supports for administrative decision on elaborated fuel management of power plant, broadly enhance the level of fuel management to acclimatize current coal market, and propose feasible methods and approaches to reduce and control the deficits for power plant.