China Enforces Power-Rationing At Major Industrial Hubs Amid Shortages And Climate Push
A perfect storm of increased power demand and the calls to reduce carbon emissions has resulted in power rationing across China, according to Bloomberg, citing a new report Friday from 21st Century Business Herald.
Power curbs are being forced onto major factory hubs in more than ten provinces, including Jiangsu, Zhejiang, and Guangdong. Local governments ordered power cuts to meet carbon emission rules, following the country’s top economic planner, outlining how an economic rebound in the year’s first half resulted in high carbon emissions in nine provinces.
The Business Herald reported soaring coal prices are causing pain for power plants that have reduced power output, creating electricity supply gaps in some provinces. If those gaps are persistent through the winter season, larger power curtailments could be ahead.
Power cuts were also issued across 14 cities in the northern province of Liaoning after the grid suffered supply shortfalls. “Power suppliers will spare no effort to keep providing electricity to residents, hospitals, schools, radio, TV, telecommunications, transportation hubs and other important users,” a local grid operator’s social media notice read.
AgriCensus reports broadening power cuts also impacted agriculture hubs. Several food plants in Jiangsu and the northern port city of Tianjin that crush soybeans into oils for salad dressings and animal food were affected.
Caixin also reports the government canceled electricity price discounts for aluminum smelters in Yunnan province. Yunnan Aluminum Co. warned last week production would be significantly reduced because of consumption controls.
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