China's thermal power generation hurt by renewable output surge

Hydro and wind outputs rebounded strongly, however.

On the supply front, hydro and wind outputs rebounded strongly in July thanks to the ample rainfall in Southeast China and the recovery of wind speed in Northern China.

According to a research note from Nomura, on the other hand, thermal power generation was squeezed by the surge of renewable output.

This resulted in a 3.2% drop y-y, the report noted.

Heres’ more from Nomura:

The utilization of respective fuel sources followed the same trend as the trend of output growth.

According to CEC, new power capacity was 42.7GW in 7M14 (3.4% of power generating capacity as at end-2013).

As we expect more capacity to be completed in the second half of the year, according to the prior year’s experience, we maintain our forecast of 95GW net additions for 2014F.