Explainer | China’s power crisis: why is it happening and what does it mean for the economy?
- China is facing a power shortage due to heatwaves and drought, affecting the Yangtze River basin, home to factories and a large population
- The power crisis has been triggered by extreme weather, which is likely to become more frequent as the planet warms due to climate change
What is happening with China’s power supply?
Since mid-July, China’s electricity load has spiked due to demand for air-conditioning during the peak summer season.
In July, electricity consumption rose by 6.3 per cent year on year, with residential consumption jumping 26.8 per cent, according to the National Energy Administration.
A total of 19 provincial power grids have broken records for electricity loads, the state-owned CCTV said. Meanwhile, consumption continues to rise in August, according to the China Electricity Council.
As a result, power restrictions have been imposed on various economic and manufacturing hubs along the Yangtze River.
The southwestern province of Sichuan and Chongqing city on the upper reaches of the river have been the worst affected.
Sichuan has enforced a production shutdown across various industries since August 15. Some cities including the provincial capital Chengdu have issued power restrictions on commercial and residential power use.