A spokesperson for Shell (China) told Jiemian News that Shell's decision to withdraw from the Chinese power market is consistent with the information released on the "Capital Market Day" last year. Shell will invest in power selectively, focusing on extracting value from its power portfolio
"Shell has taken the decision to exit the power value chain in China, including power generation, trading and marketing, from the end of last year."
On April 29, Shell (China) spokesman made the above statement to Interface news.
A few days ago, Jiangsu Power Trading Center announced that the trading center accepted Shell Energy (China) Co., Ltd. voluntary cancellation of market registration application; Guangdong Power Trading Center also issued a document saying that it accepted its application for voluntary withdrawal from the market.
Shell Energy (China) Co., LTD., established in 2014, was one of the first foreign companies registered to participate in China's electricity trading market, and will participate in electricity trading in Jiangsu and Guangdong provinces in China around 2020.
Shell's exit from China's electricity market is related to the company's slowing pace of energy transition, and also to the fierce competition in China's electricity sales market and the difficulty of making profits.
A spokesperson for Shell (China) told Jiemian News that Shell's decision to withdraw from the Chinese power market is consistent with the information released on the "Capital Market Day" last year. Shell will invest in power selectively, focusing on extracting value from its power portfolio.
In January 2023, Wael Sawan succeeded Ben van Beurden as Shell's new CEO. Sarwan was previously head of Shell's integrated gas, renewable energy and energy solutions. Since taking over, Weiswan has redefined Shell's energy transition path.
Last year, Shell highlighted the three principles of "Performance, discipline and simplification" on Capital Markets Day. Under the guidelines, Shell focused more on what it was good at. This is the first time since 2021 Shell put forward the "enabling progress" business strategy that Shell has released a signal to the outside world that the pace of energy transition has slowed down.
In March, Shell released its first energy transition strategy update since the launch of its "Enabling Progress" business strategy in 2021. As part of the strategy update, Shell lowered its carbon emissions targets and adjusted its power business development strategy.
In its new Energy Transition strategy, Shell said it would focus on specific markets and segments based on a shift in value over volume growth in the power sector. This includes selling more electricity to commercial customers and less to retail customers.
Shell has defined its power operations in Australia, Europe, India and the United States, excluding China. It will establish a power business, including renewable energy, in those countries.
The acceleration of Shell's power business began in 2019. Shell said at the time that Shell's annual oil production had peaked in 2019 and its total oil production was expected to decline by 1-2% per year until 2030. To this end, the company proposed a new goal - to transform into the world's largest power company.
