China's coal plans risk being derailed by rising energy prices and this could deal another blow to the country's slow economic growth, Bloomberg reported.

Coal prices are rising as fears that the conflict in Ukraine could lead to energy supply disruptions cause a surge in demand for the fuel. “As long as those tensions continue, we’re likely to see prices remain elevated,”  said Shaw & Partners Ltd analyst Peter O'Connor.

China's state planning agency has announced another round of coal price cuts, threatening to intervene if a certain range is breached. But China's coal market, as large as it is, cannot completely insulate the country from rising energy prices, the publication notes.

The number of factors the authorities cannot control has increased immeasurably. For example, oil has topped $100 a barrel and some Chinese gas prices have hit record highs as last year's global energy crisis turned into a new one because of the geopolitical situation.

Unless Beijing can keep coal prices in check, the country's industrial base will not be well protected from higher electricity prices, experts say. However, the situation around Ukraine could open up access to new coal supplies for industry.

If Russian goods do not reach European markets as a result of sanctions, more coal is likely to go to China. Russia is its second largest supplier. In February, the two countries struck a deal that should double trade turnover over the next four to five years.