• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

China energy crunch triggers alarm, pleas for more coal

September 28, 2021 by David Barret Leave a Comment

September 28, 2021

By David Stanway

SHANGHAI (Reuters) – As a severe power crunch roils China’s northeastern industrial heartland, senior officials face mounting pressure from alarmed citizens to ramp up coal imports thick and fast in order to keep lights on, factories open and even water supplies flowing.

With electricity shortages sparked by scant coal supply crippling large sections of industry https://ift.tt/2Y5vsoD, the governor of Jilin province, one of the hardest hit in the world’s no.2 economy, called for a surge in coal imports, while a power company association said supply was being expanded “at any cost”.

News organisations and social media carried reports and posts saying the lack of power in the northeast had shut down traffic lights, residential elevators and 3G mobile phone coverage as well as triggering factory shutdowns. A utility in Jilin even warned power shortages could disrupt water supplies at any time, before apologising for causing alarm.

Cities such as Shenyang and Dalian – home to more than 13 million people – have been affected, with disruption at factories owned by suppliers to global companies like Apple and Tesla. Jilin is one of more than 10 provinces that have been forced to ration power https://ift.tt/3odAuKz as generators feel the heat of soaring coal prices that they can’t pass on to consumers.

Speaking to local power firms on Monday, Han Jun, the governor of Jilin province, with a population of close to 25 million people, said “multiple channels” needed to be set up to guarantee coal supplies, and China should source more from Russia, Mongolia and Indonesia.

He said the province would also urgently dispatch special teams to secure supply contracts in the neighbouring region of Inner Mongolia, according to the province’s official WeChat social media account.

Goldman Sachs estimated that as much as 44% of China’s industrial activity has been affected by power shortages, potentially causing a 1-percentage point decline in annualised GDP growth in the third quarter, and a 2-percentage point drop from October to December.

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

‘AT ANY COST’

The power crunch has taken hold https://ift.tt/3odAuKz as a shortage of coal supplies, toughening greenhouse has emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage.

Rationing has been implemented during peak hours in many parts of northeastern China since last week, triggering state media reports of power supply disruptions in many cities and stoking concern among the country’s avid social media users.

As some shops in the northeast operated by candlelight and malls shut early, posts on China’s Twitter-like Weibo service expressed concern about water after a public utility in Jilin warned users that power shortages could hit supplies at any time.

Jilin governor Han urged companies to fulfil their “social responsibilities” and “overcome the difficulties” caused by coal price rises.

The China Electricity Council, which represents the country’s power suppliers, said in a note on Monday that coal-fired power companies were now “expanding their procurement channels at any cost” in order to guarantee winter heat and electricity supplies.

It said China needed to increase the production and supply of coal while guaranteeing safety and environmental protection. More medium- and long-term contracts needed to be signed to raise power plant inventories ahead of winter.

But David Fishman, China energy policy researcher and manager at the Lantau Group, an economic consultancy, said flaws in China’s pricing system were ultimately to blame for the current round of shortages.

“This is about coal generators unable to operate their plants profitably, in most cases,” he said.

Though policymakers had previously warned that China needed to build more coal-fired power plants in order to offset potential power shortages over the 2021-2025 period, utilisation rates at existing plants remain low – suggesting they lack economic incentives to maximise output.

“In the short term, the only relief policies that make sense are digging more coal out of the ground, which is bound to be an unpopular idea, or make end-users pay more for their power,” Fishman added.

(Reporting by David Stanway; Editing by Kenneth Maxwell)

Source Link China energy crunch triggers alarm, pleas for more coal

David Barret
David Barret

Related posts:

  1. Tennis – ‘Everyone suddenly is against me’: Tsitsipas defiant on U.S. Open exit
  2. Raisi says Iran ready for nuclear talks, but not under Western ‘pressure’ – TV
  3. Soccer-England push France out of top three in FIFA men’s rankings
  4. 4 ways to leverage ROAS to triple lead generation

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • New Nimbus COVID Variant Present In The UK, Infections Could Spread This Summer
  • Scientists Have Finally Measured How Fast Quantum Entanglement Happens
  • Why Earth’s Magnetic Pole Reversals Are So Fascinating
  • World First Artificial Solar Eclipse Created, The “Closest Thing” To HIV Vaccine Gets FDA Approval, And Much More This Week
  • “Remarkable” Pattern Discovered Behind Prime Numbers, Math’s Most Unpredictable Objects
  • People Are Only Just Learning What The World’s Most Expensive Cheese Is Made Of
  • The Physics Behind Iron: Why It’s The Most Stable Element
  • What Is The Reason Some People Keep Waking Up At 3am Every Night?
  • Michigan Bear Finally Free After 2 Years With Plastic Lid Stuck Around Its Neck
  • Pangolins, The World’s Most Trafficked Mammal, May Soon Get Federal Protection In The US
  • Sharks Have No Bones, So How Do They Get So Big?
  • 2025 Is Shaping Up To Be A Whirlwind Year For Tornadoes In The US
  • Unexpected Nova Just Appeared In The Night Sky – And You Can See It With The Naked Eye
  • Watch As Maori Octopus Decides Eating A Ray Is A Good Idea
  • There Is Life Hiding In The Earth’s Deep Biosphere, But Not As You Know It
  • Two Sandhill Cranes Have Adopted A Canada Gosling, And It’s Ridiculously Adorable
  • Hybrid Pythons Are Taking Over The Florida Everglades With “Hybrid Vigor”
  • Mysterious, Powerful Radio Pulse Traced Back To NASA Satellite That’s Been Dead Since 1967
  • This Is The Best (And Worst) Sleep Position
  • Artificial Eclipse, Dancing Dinosaurs, And 50 Years Of “JAWS”
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version