China rations power amid record heat wave

China has resorted to power rationing in several regions of the country in the face of a record heat wave coupled with the lowest level of rainfall in history. Analysts say the rationing disrupts production in some sectors, but the impact is limited.

Among the regions that have begun rationing electricity are Sichuan, Zhejiang, Jiangsu and Anhui, where local governments are also requiring industrial companies to make adjustments to their energy use.

Among the most affected regions is Sichuan province in southwestern China, where the drought has also caused a significant drop in hydroelectric power generation. The impact was greater, with hydropower contributing 85% to its power generation, according to 2020 data, far more than the national level of 17%.

In Chengdu, the capital of Sichuan, with more people turning to air conditioners to cool down, the power load during peak hours has risen to 40% to 50% of the total power load of the entire city, they reported. the local media.

The Sinchuan provincial government this week issued an emergency notice to some high-capacity enterprises, calling for production to be halted from August 14 to 20, and some 7 million kilowatts of power to be released for residential use.

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The production halt will have a major impact on lithium carbonate production, of which Sichuan is a major base. The six-day stoppage will reduce lithium carbonate production by some 1,120 tonnes in the province, researchers at Guotai Junan Securities wrote in a research note on Tuesday. This would be 3% of the entire industry, they said.

Among the most affected regions is the province of Sichuan, in southwestern China, where the drought has also caused a significant drop in hydroelectric power generation

Impact of power outage limited, analysts say

However, researchers from China International Capital Corporation (CICC) argued that the impact of this round of power outages would be limited, saying they are seasonal, temporary and limited to regions affected by extreme heat and lack of rainwater. they said.

“Judging from the announcements of listed companies between August 1 and 17, there were 26 listed companies that issued production cap announcements, representing 0.6% of the total,” the researchers wrote. CICC.

They noted that this was an increase of nine companies in July, but lower than the 46 companies that issued similar notices in September 2021.

CICC analysts also expect industrial companies to make up for their losses by producing overtime after the six-day power restriction period ends and the power supply gap will ease when temperatures start to drop again.

Data from China’s National Climate Center shows that, until August 15, the country’s heat wave lasted 64 days, the longest duration since 1961. The national average rainfall in July was 96.6 millimeters, a 20 .6% less than the previous year, reaching the second lowest figure in the same period in history since 1961, according to data from the China Meteorological Administration.

They noted that this was an increase of nine companies in July, but lower than the 46 companies that issued similar notices in September 2021.

On Wednesday, Chinese Vice Premier Han Zheng stressed the need to strengthen national coordination, ensure power supply for regions, residents and key industries, and firmly prevent power outages during an inspection visit. to the China State Power Grid Corporation.

Article republished from the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to original article:https://news.cgtn.com/news/2022-08-18/China-rations-power-amid-record-high-heat-wave-1cBeTnLWmYw/index.html