China Vows Measures to Cope With Power Supply Crunch

The Chinese government has guaranteed it will implement measures to cope with the tightened power supply. This as the power crisis gripping the country is posing threats to its economic growth, particularly output from manufacturing companies.

In a statement on its website, China’s National Energy Administration said it dispatched work teams to Beijing, Hebei, eastern Inner Mongolia, Heilongjiang, and Hunan to conduct on-site supervision. The teams have also advised local governments and enterprises to implement power supply measures, increase energy supply, and guarantee supply during the coming winter season.

The team required local governments and enterprises to exploit the potential of increasing energy production, prioritize coal supply for power generation and heating to meet people’s needs, and promote social and economic stability.

Zhang Jianhua (center), Director of National Energy Administration (NEA) of China, led a recent inspection at CNOOC Oilfield Services Co., Ltd., a subsidiary of China National Offshore Oil Corporation (Photo courtesy: National Energy Administration (NEA) of China)

Poses Threats on Production

Local media reported widening power shortages in China have threatened production outputs of supply chains to the world’s major brands, from mobile devices to cars. This as the government stood its ground against tough emissions standards, raising prices of coal, the use of which are high among manufacturers and industry.

Some of the world’s major chipmakers that have bases in China have suspended production in certain days of the week, while some printed circuit board makers said the power crisis will not make any significant dents on production as other plants would make up, a report by Reuters said on Monday.

Latest report from China’s NEA said from January to June, the country’s total electricity consumption rose to 3,933.9 billion kilowatt hour, a year-on-year increase of 16.2 percent. In terms of industries, the power consumption of the primary industry was 45.1 billion kilowatt hour, a year-on-year increase of 20.6 percent while secondary industry was 2,661 billion kilowatt hour, an increase of 16.6 percent.

Power consumption of tertiary industry was 671 billion kilowatt hour, an increase of 25.8 percent over the same period of last year while residential consumption got 556.8 billion kilowatt hour, a year-on-year increase of 4.5 percent.

Ensures Power Supply

The National Coal Exchange Co., Ltd. said major coal production, mining enterprises, and power supply and heating companies in northeast China signed mid-to-long term coal supply contracts to ensure coal supply for the coming winter in the region.

State-run Xinhua News Agency quoted the State Grid Corporation as saying that it would take comprehensive measures to ensure power supply for people’s basic needs and try its best to avoid power cuts. The State Grid will strengthen the distribution of power from its entire network, arrange the network operation, and ensure that all available power generators from power companies connect to the grid.

The company said it would coordinate and dispatch resources by tapping the power transmission potential of cross-provincial power networks. It would also strengthen electricity consumption monitoring and ensure power supply for residential users.

The State Grid also vowed to strictly implement the power supply and consumption plans formulated by the government, stabilize power supply and consumption, and improve emergency response plans, said the company.