A New Coal Pricing Model Based on EVA in Coal-power Value Chain

Abstract

China began its market oriented coal pricing reform since 2012 but great price fluctuation came with the reform. Government, coal mining companies and power plants are all eager to find a reasonable pricing method which can be accepted by both upstream and downstream of the coal-power value chain. A new pricing method based on the return of capital (which is measured with EVA) is proposed in this paper and minimum, maximun & equilibrium pirce models are established here. Finally, the 5500cal/kg thermal coal at Bohai Sea is taken as a case and the quilibrium coal price is 518.0RMB per ton than both upstream and downstream of coal-power chain can gain same return per capital invested.