MYSTEEL: Qinghai's new power policy set to lift electricity costs for FeSi smelters

Ferrosilicon (FeSi) smelters in Northwest China's Qinghai province, one of the country's major FeSi production bases, are expected to face higher electricity costs following the provincial government's recent implementation of the Reliability Capacity Compensation Mechanism for the Power Generation Side ("the Capacity Mechanism") - a five-year policy to secure steady power supply during grid load peaks, Mysteel Global has learned.

Policy background The new policy, jointly issued by the Qinghai Development and Reform Commission and the Energy Bureau on July 7, provides a compensation fund to support eligible operational power facilities, including public coal-fired and gas-fired power plants, solar thermal power plants not incorporated into the sustainable development pricing mechanism