China’s gas power plants are struggling to stay afloat as they face mounting pressure from lower tariffs and the ongoing trade war, says Wood Mackenzie. The Chinese government has been reducing regulated gas-fired power tariffs by 16% to 28% in key provincial markets since June 2020. This is driven by political goals of reducing end-user power prices and improving manufacturing competitiveness in the wake of trade tensions with the US. Power tariffs for industries in China have fallen 25% in the last three years. Gas-fired power tariffs at some higher-utilised gas plants (>3,500 hours per year) have even been ... (full story)