China’s drought increases global coal shortage

• 2 years ago (2022-09-07)
• David Flin

Asia 929 Coal 314 Hydropower 141

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China’s drought has caused it to increase coal consumption as lack of hydroelectric generation forces it to turn to coal to meet electricity demand. This, in turn, is leading to a shortage of coal on the global market, affecting power producers in Europe and America turning back to coal in the face of rising gas prices.

Late July and early August should be the wettest period in southern China. Rainfall was well below normal this year, with precipitation at Yibin since the start of July being just 135 mm, compared with an average of 464 mm in 2104-2021. Hydroelectric power generation is likely to remain depressed throughout the rest of 2022 and into 2023.