energy crisis in China causes alarm, pleas for more coal

  • Governor of Jilin Province urges: more coal imports
  • Environmental controls, rising prices undermine electricity generation
  • fears like power cuts hit traffic lights, 3G networks, factories

SHANGHAI, Sept. 28 (Reuters) – If a serious power crunch hurtles through the northeastern industrial heart of China, senior civil servants face increasing pressure of alarmed burgers to get up up coal import thick and fast in to hold lights on, factories open and even water supplies are flowing.

With electricity shortages due to scarce coal supply crippling large sections of industry, the governor of Jilin province, one of The hardest hit in the world is no.2 economy, called for a strong increase in coal imports, while a power business association said the offer was expanded “at any time” cost”.

News organizations and social media carried reports and messages over the lack of power in the northeast had shut down traffic lights, residential elevators and 3G mobile telephone coverage as well as causing factory shutdowns. a utility in Jilin even warned power shortages can disrupt the water supply at any time, before you apologize for to alarm.

Cities like Shenyang and Dalian – home until more than 13 million people – be affected, with disruption at supplier factories to: global businesses like Apple (AAPL.O) and Tesla (TSLA.O). Jilin is one of more than 10 provinces die have been forced to ration power such as generators the . to feel heat of rising coal prices die they can’t pass on to consumers. read more

To talk met local power businesses on Monday, Han Jun, the governor of Jilin province, with An population of almost 25 million people, said should be “multiple channels” set up until guarantee coal reserves, and China should source more from Russia, Mongolia and Indonesia.

Han said the province would also met urgent shipping special teams to secure supply contracts in the neighboring region of Inner Mongolia, by provinces official WeChat social media account.

Goldman Sachs estimated that as much as 44% of China’s industrial activity has been affected by: power shortages, possibly leading to a 1 percentage point decline in GDP on an annual basis growth in the third quarter, and a 2 percent point drop from October to December.

It said in published a note on Tuesday it was cutting 2021 GDP growth prediction for China to 7.8%, from the previous 8.2%. read more


The power crunch has in taken into custody as a deficiency of coal reserves, stricter greenhouse gas emissions standards and strong demand industry has pushed coal prices to peaks – China’s thermal coal futures climbed 7% at 0500GMT on tuesday to a record 1,324 yuan ($204.76) per ton.

Rationing has been implemented during the peak hours in share a lot of northeast China since last week, activation status media reports of power delivery interruptions in many cities and arouses concern among the fervent of the country social media users.

Like some shops in the northeast served by candlelight and shopping centers shut early, messages on Chinese Twitterlike Weibo service expressed concern over water after a public useful in Jilin warned users that: power shortages can hit deliveries at any time.

Governor Han van Jilin urged companies to “social responsibilities” and “overcoming the difficulties” caused by coal price rises.

The China Electricity Council, die the power suppliers, said: in a note on Monday die coal-fired power companies were now “expanding their purchasing channels at any time” cost” in order to guarantee winter heat and electricity supplies.

It said China should increase production and supply of coal met Guarantee safety and environment protection. More medium and long term contracts had to be signed to increase power factory stocks ahead of winter.

Coal traders noted that finding new import sources can include: easier said than done.

“Russia must” first meet demand from Europe, Japan and South Korea,” said one in trader based in northeast China. “Indonesian export shipments have been slowed down by rain” weather the last couple of months and Mongolia’s exports, mainly by truck, are small.”

David Fishman, China Energy policy researcher and manager at the Lantau Group consultancy, said flaws in China’s prices system were ultimately to blame for the current deficits.

“In brief term, the only meaningful aid policy is digging more coal out of the ground, which will no doubt be an unpopular idea, of make end users pay more for their power’ said Visman.

Policymakers had previously warned that China should build more coal-fired power stations in to compensate potential power shortages over the period 2021-2025, but capacity utilization at existing factories remain low.

Laura Myllyvirta, lead analyst with the in Helsinki based center for Research on Energy and clean air, Northeast China said currently had 100 gigawatts of coal fired capacity, which would be: more than enough to meet demand if plants had the incentive to buy more coal.

“Not a single grid region has reported peak loads die would even be almost exhausting available generating capacity,” he said.

Reporting by David Stanway; Additional reporting by Chen Aizhu in Singapore; Editing by Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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