southwestern province sichuanChina’s largest hydropower producer has seen its supply capacity slashed due to a prolonged drought in the Yangtze Basin, threatening another devastating power shortage in the country.
Sichuan accounts for 30% of China’s total hydroelectricity generation and generally provides a massive power surplus to the rest of the country. But it is now receiving power from other provinces after minimal rainfall and extreme temperatures of more than 40 Celsius (104 Fahrenheit).
Here’s what you need to know about power outages.
Why is Sichuan facing power shortage?
Hydroelectricity is the largest source of electricity supply in Sichuan, accounting for more than 80% of the total electricity generation.
May to October is typically Sichuan’s rainy season, allowing hydroelectric stations to maximize output to meet their summer demand.
However, rainfall fell 30% in July and 60% in August compared to the seasonal average, severely reducing hydropower generation capacity.
Although Sichuan has abundant coal reserves, coal-fired electricity accounts for just 16% of its total electricity capacity, which is not enough to meet the supply-demand gap.
Peak power load in Sichuan also increased by 25% from a year earlier due to higher air conditioner use. Meanwhile, consumption by industrial users has also increased in recent years, with high-energy-intensive industries including aluminum and silicon moving to the sector to take advantage of cheaper energy costs.
Sichuan typically exports about a third of the electricity generated through ultra-high voltage (UHV) transmission lines to eastern coastal areas such as Shanghai. zhejiang and Jiangsu.
Despite local shortages, Sichuan needs to fulfill all of its cross-provincial electricity transmission contracts, which the grid generally regards as a priority.
What was the impact on companies?
Various types of industrial plants in Sichuan and neighboring areas chongqing – with well-known names like TaiwanFoxconn and battery giant CATL – have been ordered to shut down or halt production through mid-August to save electricity for home users.
More than a dozen listed firms have warned that rationing could lead to serious delays in cargo deliveries and losses of billions of yuan.
The rolling blackout eventually affected residential users as power shortages worsened. Commercial sites were also asked to cut down on working hours to save electricity.
How widespread is the impact and how long will it last?
Several regions in central and eastern China have also warned of tight power supplies and introduced power rationing for industrial users.
But analysts say power shortages this year will be less severe than last September and October, when high coal prices and supply shortages affected more than 27 provinces and territories. Regional power rationing is expected to decrease in September and October as temperatures drop.
Power companies have ramped up production and grid companies are sending electricity from the northeastern and northwestern regions to Sichuan and eastern China. State Grid Corporation On Wednesday it said it was delivering 130 million kilowatt-hours of electricity per day to Sichuan.
However, analysts also warned that the risk of power outages is still high in the coming winter, when the power load rises again, driven by heating needs.
What does this mean for the national electricity system?
of china National Energy Administration ,NEA) has begun adjusting its power development plans in 2021-2025 in response to power shortages. The authority will expedite the construction of new hydroelectric stations as well as approvals for nuclear plants and power transmission projects.
China’s major power-exporting regions, including Yunnan and Guizhou as well as Sichuan, source their electricity mainly from hydroelectricity, which is becoming more volatile as a result of climate change.
Sichuan’s provincial grid-connected utilities have already cut electricity exports by 10% in 2021 compared to a year earlier, although state-level grid-linked power plants have maintained the same level of transmission.
More grid flexibility is also needed, with China trying to develop an electricity market to help provinces respond more quickly to changes in supply and demand. Experts say bigger and smarter grids should be a priority.
Fast-growing renewable energy also requires the grid to invest more in power storage and upgrade its systems to accommodate the gap between solar and wind power.
Meanwhile, coal is still expected to play a significant role, making it more difficult for China to cut fossil fuels out of its energy system and meet its low-carbon targets.
Sichuan accounts for 30% of China’s total hydroelectricity generation and generally provides a massive power surplus to the rest of the country. But it is now receiving power from other provinces after minimal rainfall and extreme temperatures of more than 40 Celsius (104 Fahrenheit).
Here’s what you need to know about power outages.
Why is Sichuan facing power shortage?
Hydroelectricity is the largest source of electricity supply in Sichuan, accounting for more than 80% of the total electricity generation.
May to October is typically Sichuan’s rainy season, allowing hydroelectric stations to maximize output to meet their summer demand.
However, rainfall fell 30% in July and 60% in August compared to the seasonal average, severely reducing hydropower generation capacity.
Although Sichuan has abundant coal reserves, coal-fired electricity accounts for just 16% of its total electricity capacity, which is not enough to meet the supply-demand gap.
Peak power load in Sichuan also increased by 25% from a year earlier due to higher air conditioner use. Meanwhile, consumption by industrial users has also increased in recent years, with high-energy-intensive industries including aluminum and silicon moving to the sector to take advantage of cheaper energy costs.
Sichuan typically exports about a third of the electricity generated through ultra-high voltage (UHV) transmission lines to eastern coastal areas such as Shanghai. zhejiang and Jiangsu.
Despite local shortages, Sichuan needs to fulfill all of its cross-provincial electricity transmission contracts, which the grid generally regards as a priority.
What was the impact on companies?
Various types of industrial plants in Sichuan and neighboring areas chongqing – with well-known names like TaiwanFoxconn and battery giant CATL – have been ordered to shut down or halt production through mid-August to save electricity for home users.
More than a dozen listed firms have warned that rationing could lead to serious delays in cargo deliveries and losses of billions of yuan.
The rolling blackout eventually affected residential users as power shortages worsened. Commercial sites were also asked to cut down on working hours to save electricity.
How widespread is the impact and how long will it last?
Several regions in central and eastern China have also warned of tight power supplies and introduced power rationing for industrial users.
But analysts say power shortages this year will be less severe than last September and October, when high coal prices and supply shortages affected more than 27 provinces and territories. Regional power rationing is expected to decrease in September and October as temperatures drop.
Power companies have ramped up production and grid companies are sending electricity from the northeastern and northwestern regions to Sichuan and eastern China. State Grid Corporation On Wednesday it said it was delivering 130 million kilowatt-hours of electricity per day to Sichuan.
However, analysts also warned that the risk of power outages is still high in the coming winter, when the power load rises again, driven by heating needs.
What does this mean for the national electricity system?
of china National Energy Administration ,NEA) has begun adjusting its power development plans in 2021-2025 in response to power shortages. The authority will expedite the construction of new hydroelectric stations as well as approvals for nuclear plants and power transmission projects.
China’s major power-exporting regions, including Yunnan and Guizhou as well as Sichuan, source their electricity mainly from hydroelectricity, which is becoming more volatile as a result of climate change.
Sichuan’s provincial grid-connected utilities have already cut electricity exports by 10% in 2021 compared to a year earlier, although state-level grid-linked power plants have maintained the same level of transmission.
More grid flexibility is also needed, with China trying to develop an electricity market to help provinces respond more quickly to changes in supply and demand. Experts say bigger and smarter grids should be a priority.
Fast-growing renewable energy also requires the grid to invest more in power storage and upgrade its systems to accommodate the gap between solar and wind power.
Meanwhile, coal is still expected to play a significant role, making it more difficult for China to cut fossil fuels out of its energy system and meet its low-carbon targets.