On 17 October, the Ministry of Ecology and Environment (MEE) issued the official version of 2023-2024 allocation plan for the power sector. While largely confirming the details from the earlier draft released in July, the plan sets slightly less stringent benchmarks for coal plants generating electricity for 2023-2024 period. When not taking into account the role of correction factors, the adjustment of benchmarks may lead to additional over 65 million allowances for power plants in each year, equivalent to 1.44% increase in the supply compared to the draft allocation plan. The discontinuation of using correction factor for cooling system, in combination with the stricter rule for load efficiency correction factor, will however help tighten the total allowances.
What remains unchanged? Scope coverage The long awaited allocation plan covers the same scope as previous compliance cycles: the Chinese national ETS continues to regulate coal and gas plants, with three categories of coal plants, including those with ge…
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