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China’s power squeeze could drag into winter after summer drought, may need ‘special attention’

  • Sichuan province anticipating 10 to 30 per cent power shortfall over the winter months in the worst-case scenario after being hit hard by summer droughts
  • Coal producers have been boosting output, while also prioritising supply of thermal coal since early October to prepare for increased winter power demand

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The Yangtze River is the world’s busiest and largest waterway for inland water transport, and handles over 80 per cent of iron ore, coal and foreign traded goods along the basin. Photo: Xinhua

The lingering impact of the extreme summer drought along Yangtze River may continue to tighten the power supply in China in the coming months as water levels in major reservoirs remain low, especially if the winter is much colder under the La Nina climate phenomenon, experts said.

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Sichuan province, which was hit hard by droughts and a subsequent power crisis two months ago as it relies heavily on hydropower, is anticipating a 10 to 30 per cent power shortfall over the winter months in the worst-case scenario.

A lack of rainfall and water in reservoirs and a shortage of coal and gas, as well as difficulties in retaining power generated in Sichuan and purchasing electricity from other provinces, are set to restrict supply, according to China Water, a newspaper supervised by the Ministry of Water Resources.

“The situation of guaranteeing power supply facing the peak demand in winter is grim,” said a report in late September, citing Sichuan’s economic and information department.

The key is how cold the coming winter will be, which is hard to tell because of La Nina
Yuan Jiahai

Sichuan’s estimate, though, was made under the worst-case scenario, according to Yuan Jiahai, a professor at the School of Economics and Management at North China Electric Power University in Beijing, and the anticipated conditions may not occur due to the lessons learned in summer.

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