(Yicai) Nov. 5 -- Four of the five largest Chinese state-owned power generators to have reported nine-month earnings logged big profit gains thanks largely to lower fuel costs, but with revenues under pressure from falling prices as more renewable energy comes on tap.

China Datang, China Guodian, China Energy Investment, and China Huaneng had a combined net profit of CNY29.2 billion (USD4.1 billion) for the three quarters ended Sept. 30, according to their latest financial reports. State Power Investment has yet to disclose its latest results.

Datang was the only one of the four to post growth in both profit and revenue. The Beijing-based firm’s net profit surged 56 percent from a year earlier to CNY4.4 billion (USD619.1 million), while revenue rose 0.4 percent to CNY91 billion (USD12.8 billion).

The other companies either reported higher profit, but dwindling revenue, or their revenue growth was slower than profit growth due to lower electricity prices.

Electricity demand jumped in the period, while fuel costs fell, driving up Datang’s profit, according to the company. Hydropower performed well thanks to high water levels in its hydropower dams, with the firm generating more electricity from hydropower, thermal power, and other renewables than a year ago.

On average, electricity prices climbed between 1.46 percent and 3.98 percent in the first nine months to between CNY438 per megawatt hour (USD61.6/MWh) and CNY510/MWh at the four firms. The more power they sold at market prices, the lower the price.

More electricity from renewable sources will put pressure on prices next year, Huaneng International’s management said on the Beijing-based company’s earnings conference call.

China Shenhua Energy, which also produces most of its electricity from coal, is facing shrinking earnings as more power from green sources enters the market. Its first-half profit from power generation tumbled to CNY600 million (USD84.4 million), less than the same period of last year.

The average electricity price has declined as the country’s new energy network expands, Shenhua Energy noted, adding that hydropower and green energy have performed well this year, so prices have slumped in some provinces.

Editor: Kim Taylor