China to face possible power shortages

• 13 years ago (2011-04-29)
• David Flin

Asia 848 North America 998

---

The China Electricity Council said that China may face power shortages of 30 GW during summer as electricity supply lags behind demand growth. The CEC said that some regions are facing shortfalls that are “bigger and earlier” than last year.

Power supplies in provinces in the country’s north, east and south are expected to be “tight”.

China’s power demand rose 13 per cent to 1090 TWh in the first quarter of 2011, and is expected to grow 9 per cent to 4700 TWh over the course of the year. Power generation capacity is predicted to rise by 9 per cent. The increase is lower than the council’s forecast at the start of the year because of a smaller than expected expansion in thermal power units. China added 13.79 GW of power capacity in the first quarter, down by 15 per cent from a year earlier.

Michael Tong, an analyst at Deutsche Bank, said: “The country may need to consider speeding up power generation capacity expansion to avoid power shortages.” Li Xiangming, Deputy Head of Guangdong Economic and Information Commission, said that Guangdong may face as much as 6.5 GW in shortfall this summer.

Rising coal prices also caused difficulties, according to the CEC. Coal-fired power plants in six provinces in central China, three provinces in northeastern China, and in Shandong province in the east are suffering losses. Power station spot coal prices at Qinhuangdao port, a Chinese benchmark, rose above 800 yuan ($123) a metric ton at the end of April, the highest in four months and 7 per cent above last year’s average price.

Coal stockpiles at China’s major power plants increased to 53.11 million tons, as of mid-April, sufficient for 14 days of use.