Powering up

coal

The way utilities traditionally have gone about their procurement in Asia is very different from the more developed European model. Until recently, the Asian model of procurement was based on bilateral fixed-term contracts between the coal producers and the power companies. These deals usually take the form of large-volume, take-or-pay contracts and the delivery price is fixed annually through negotiation. Take or pay means that the buyer either purchases the contracted shipment or must instead

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