There’s some interesting news out of China; the country’s largest electricity provider, Huaneng Power International, Inc., reported a profitable first half of 2009. The company reported a profit of $273.6 million, which is notable since it reported a loss the for the first half of 2008—its first since listing in Hong Kong in 1998—of $79.5 million.It’s not all smooth sailing, however. Huaneng issued a statement saying, “there are still risks of tight coal supply.” It added, “the coal market is still fraught with uncertainty and instability,” and warned that coal supply and its rising price could create some difficulties in the power generation industry. Some of these difficulties have arisen because of intense negotiations between China’s top power generation companies and coal miners over price caps and coal production. Coal-based power plants produce nearly 80% of China’s electricity.
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