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According to the NDRC announcement, Fushun Aluminum Works will pay 0.017 yuan/kwh to Northeast Power Grid company as power transmission fee and 0.1 yuan/kwh to Liaoning Power Grid Company as energy price, which both amount to 0.117 yuan/kwh, 20 percent less than the previous power transmission and distribution price of 0.146 yuan/kwh.
The direct power purchase price for Fushun Aluminum to obtain electricity directly from Huaneng Yimin Power Plant will be 0.407 yuan/kwh, considering the basic onto-grid electricity price of 0.29 yuan/kwh in Liaoning Province.
The direct power purchase business will save Fushun Aluminum about 0.07 yuan/kwh for the electricity supply.
As a large power consumer, Fushun Aluminum's direct power purchase is expected to save 270 million yuan in its power consumption cost if all of its power supply is secured by Yimin power plant, Shanghai Securities News predicted.
This has been the first trial direct power purchase in China since the Chinese government announced to carry out direct power purchase on a trial basis in 15 aluminum enterprises.
Among the 15 enterprises, 9 are subsidies of Chinalco, and their aggregated aluminum production capacity makes up 63 percent of Chinalco's total. When all the direct power purchase deals are made, Chinalco will be the biggest beneficiary.
Chinalco had achieved cooperation agreement on direct power purchase with China Guodian Corporation on Oct. 13.
However, Heng Kun, analyst with Anxin Securities, noted that the pilot program is good news for aluminum enterprises in short term, but it may stimulate the enthusiasm of aluminum enterprises to resume production, which would lead to further overproduction of aluminum.
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