U.S. electricity costs half the price of China's

China's energy sector is finding new ways to meet its needs

Median electricity prices for U.S. industrial plants are one-third to one-half of prices in China, and the savings in the U.S. can be as high as 70 percent, according to "A Comparison of U.S. & China Electricity Costs."

A first "apples to apples" comparison of industry electric costs in both countries was released by Biggins Lacy Shapiro & Co. (BLS & Co.) and Tractus Asia.

"A search for lower costs had led many manufacturers to set up operations in China starting in the early 1990's," said Tim Comerford, Senior Vice President – Energy Services, BLS & Co. "However, the costs of production are constantly evolving. To our surprise, we found China's electricity prices rose much faster than those in the U.S. over the last ten years, growing 17.5 percent versus 11.9 percent in the U.S."

The report shows that median electricity prices for industrial plants in the U.S. tend to be 34-49 percent lower than Chinese prices. In some regional comparisons — specifically the South Central U.S. versus Jiangsu, China – savings can be as high as 70 percent.

"Unlike other costs that can be offset somewhat by scale economies, China's higher electricity costs are not one of them, and the cost differential is likely to remain large – barring a major devaluation of the renminbi," said Dennis Meseroll, Executive Director, Tractus Asia.

Conversely, electric prices in the U.S. have been stable or have seen downward pressure over the past two years.  "The U.S. has experienced a significant increase in the supply of natural gas, and as a result, near record low natural gas prices.  Many utilities are converting or shutting down coal generating facilities in favor of combined cycle natural gas plants," said Comerford.

To compile the data, BLS & Co. worked directly with U.S. utilities, and Tractus Asia consulted with authorities from China's State Grid Corp.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013