Chinese Regions Face Severe Winter Power Shortage

Reuters reports fresh warnings of looming power shortages in southern and central China, as hydropower is pinched between growing demand for water and diminished supplies, and coal generation squirms between high fuel costs and fixed electricity prices.

The shortage, roughly 8 percent of total installed capacity in areas the Southern Power Grid services, will potentially curb operations of energy-intensive firms like metal smelter Chalco which are already facing power rationing.

It may also increase demand for gas in regions such as Guangdong, which has begun to take in the cleaner fuel via pipeline from Turkmenistan, in addition to liquefied natural gas imports through the country’s first receiving terminal Dapeng ….

Chongqing, a municipality serviced by the Central China Grid, has forecast its power deficit may expand to 3.8 GW in the winter-spring season, or more than 30 percent of maximum demand, the local grid has said.

“The winter and spring outlook of power supply and demand allows no room for optimism,” the NEA said.

See also a recent Economic Observer article on shortfalls in hydro and coal generation, via CDT.


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