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Chinese Cities short of Energy

Several Chinese cities are facing energy shortage and have imposed restrictions on electricity use. Chinese authorities have ascribed these power shortage problems to a surge in power demand due to an unusually cold winter and to the growth of industrial production as it faces a shortage of thermal coal.

As per reports, China’s import ban on Australian coal owing to fractured trade relations, has also partly exacerbated the situation. Many local power plants depend on high quality Australian coal and now they are having trouble finding an alternative as country’s coal mines are struggling to fill the shortfall. It has hit energy supplies and sent prices soaring.

As per state media, Chinese experts warn that such shortage also exposes problems in the power supply in China, as the suspended coal imports will exacerbate the imbalance in power supply. Data from industry website cctd.com.cn showed that China imported 75 million tons of coal from Australia in 2019, which is roughly 3% of China’s coal consumption. The ratio, however, could reportedly exceed 10 per cent in more developed provinces that are drawn to the high quality of Australian coal.

State media reported that many provinces in China such as East China’s Jiangxi and Zhejiang, as well as Central China’s Hunan have issued proposals to save electricity and start their orderly use, as electricity loads have increased rapidly. Power shortage has reportedly hit normal operations of factories as well as the public amenities.

As per a state media report, The China National Coal Association has urged coal firms to sign more medium- to long-term contracts to ensure a steady supply and stable prices amid tight supply and “abnormal” price fluctuations. China’s electricity is mainly provided by thermal power stations that use coal, and coal has accounted for 68 percent of electricity supply in 2019

By Naresh Sagar

Mentor MSME, Motivator, Media Event Org, Management fiscal & Water management.Social Media branding,Internet broadcasters,Propunder of Indian Philosophy

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