Archive for July, 2011

China Energy Shortages Summer 2011

July 6th, 2011

China’s Electricity Council said the country will likely face power shortages of 30 million kilowatts this summer so the government has moved quickly to put restrictions in place as the peak season approaches. Big industrial provinces such as Guangdong and Zhejiang are already scaling back power consumption. These reductions are likely to hinder aluminum, cement, zinc and steel output.

Coal powers the Chinese economy. The country is the world’s largest consumer, gobbling up nearly half of the world’s coal consumption in 2009. Coal accounted for 71 percent of China’s energy in 2008—more than three times the United States’ share. The Electricity Council estimates that the country’s coal demand will reach 1.92 billion tons in 2011, up nearly 10 percent from 2010.

The Bohai-rim Steam-coal Price Index, a major indicator of China’s costs of coal for power generation, hit a new high of 808 yuan per ton in the week to April 27 since the index was launched in October 2010, according to the website China Coal Resources.