Spiraling Energy Prices In The West Benefitting Chinese Factories

4 comments

1. > Just think what a different world we would see today if tariffs were used to protect local industries like what is being implemented now.

   How would it be different? Millions of consumers would be paying higher prices and a few tens of thousand more people would have jobs.

   Choice would be worse due to lack of competition e.g. European EVs were pretty crap before and very expensive.

2. How about a full industrial policy. Such as the inflation Reduction Act, which focused on restoring new tech industries.

   That along with a “more of everything” energy policy would both go a long way.

   Instead we currently have a war on wind from the executive, and wide ranging tariffs that don’t seem to be driving any new factories domestically.

3. I found the article to be somewhat peculiar, but I thought I would mention that Norway has a fixed price for electricity of EUR 0.05/kWh. It is not possible for them to produce at a lower cost than the profit margin would allow. As a state-owned entity, they are unwilling to deliver to the rest of Europe unless they are able to receive payment equivalent to that price. We do not purchase from Europe; we only buy from Sweden and Finland, where we “swap” KWh.

   China is offering electricity at rates of less than $0.01- $10/MWh. It is my understanding that Canada and Mexico should prepare the grid to supply the USA with electricity, given the latter’s eagerness to pay higher prices for energy.

4. This article is a bit strange. It talks about the future. But right now the Chinese grid mix is still substantially coal based and emissions intensity is high.

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